Saurabh Ramesh Chaudhari MMS, M1009, SEM IV, SIMSREE

Title of the Project: SOURCES OF INFRASTRUCTURE FINANCING IN INDIA

Objective of the study: To study the need and availability of different sources for financing infrastructure projects in India and to analyse measures required to deliver and implement some of these solutions through different case studies

Introduction: It is undisputed that efficient and good quality infrastructure can boost infrastructure growth and that lack of supportive infrastructure acts as a drag on countrys Gross Domestic Product (GDP) growth rate. Recognising the importance of infrastructure development and its impact on growth prospects, an investment of over $500billion is envisaged in various infrastructure sectors over the eleventh five year plan (2007-12). Government funds need to be augmented with private sector investments to meet this huge investment requirement. Private sector participation in infrastructure is desirable not only to ensure a larger flow of resources but also to introduce greater efficiency in the supply of these services. However such projects require large capital investments locked in for long gestation periods and long breakeven periods. This gives rise to the need for complex risk mitigation arrangements to ensure financeability and the need to mobilize a suitable mix of finance, especially long-term finance, which is not easily obtained through existing plain debt and equity financing. Structured finance models become necessary to effectively manage such projects. This project focuses on different sources and mechanisms of channelizing such long term financing requirements for these projects. Methodology: The study will be carried out through review of existing available literature, data available in public domain such as news, financial reports and market information. Industry personnel will be contacted for practical and current inputs.

Saurabh Ramesh Chaudhari MMS, M1009, SEM IV, SIMSREE

Proposed Scope: The scope of study intends to include Identifying the problems associated with infrastructure financing requirements Analyzing different possible sources of funding and their suitability, in general and sector wise analysis Discussing changes in institutional and regulatory setups to channelize the funding requirements Study of specific case studies of some infrastructure projects

Scheme of Chapters: The rough proposed scheme of chapters is as follows: Sr No 1 2 3 4 4.1 4.2 4.3 4.4 4.5 4.6 5 6 7 Topic Executive Summary Introduction Scope and Methodology Discussion Problems and Risks in infrastructure financing Sources of funds Modifications required in existing systems Case Study of Delhi Airport Financing Case Study on upcoming power projects Possible adaptation of foreign financing models Conclusion Annexure Bibliography

Bibliography: (Referred till date) y Twelfth Five Year Plan 2013-18, Planning Commission Government of India (To be declared on 6th Feb, 2012) y y y Eleventh Five Year Plan 2007-12, Planning Commission Government of India Financing Private Infrastructure: Lessons from India, Montek S. Ahluwalia The Report of The Committee on Infrastructure Financing, May 2007, New Delhi