Theme

Identifying factors determining

risk perception of the investors in
UWS

Research Guide: Prof Sanjeev Chandorkar

 Conceptualisation
Due to rapid urbanisation and population growth there is a huge
need of urban infrastructure.
Urban water sector is mostly lagging in infrastructure as most of
the ULBs are debt ridden.
Water was treated as a social goods and hence it was the duty of
the government to provide water to its citizen.
But government don’t have sufficient funds.
Huge debate all around
Hence government determined to tap private sector investment.
It brought many changes and risk sharing strategies to attract the
private sector investment
A paradigm shift from “social goods” to “social and economic
goods” characteristics
 Conceptualisation
Still Government fails to attracts private sector
investment in UWS in spite of bringing many policy
changes
Hence it is apt to understand the risk perception of
the investors who are active (other than
central/state/ULBs, Bilateral and Multilateral
agencies) and the prospective investors
Investors include Bank, Parastatal Agencies, NBFCs,
Mutual Funds Providers, Private sector infrastructure
companies
Area: Mumbai-Headquarter of many investors
 Conceptualisation
Focused on Statutes, Sources of Funds and Ownership
Statutes:
 Various acts which govern their investment decisions, obligations etc
Sources of Funds: (eg:-)
 Wealth created by Entrepreneurial Activity indicates: Investors often
have strong sense of control over the risks that they assume. They can
be very reluctant to cede ( give up ) control to a third party or to
accept investment volatility over which they have no influence.
 Wealth acquired through inheritance or accumulated over long

periods of secure employment may indicate: Those investors have less

experience in risk taking or less willingness to take risk
Ownership:
 Investor who have high percentage of share have the highest share of
decision making ability
 Objectives
To compare different groups of existing/likely investors in
UWS based on select group of characteristics
To compare the investors within the same groups (Bank,
Parastatal Agencies, NBFCs, Mutual Funds Providers,
Private sector infrastructure companies)
To collate risk perceptions of different investors in UWS
To analyse the risk perceptions of the investors and
explore their relationships with the above mentioned
characteristics
To prepare a report that will help investors, academics and
researchers in understanding investment risks in UWS
 Research Questions
Why there are less private sector investment in UWS?
What are the risks in investing in UWS as perceived by
the investors?
Which are the organisations active in investing in
UWS?
What are the changes to be done to attract the private
sector investors?
 Research methodology
Literature review
Profiling of each group of investor
Bank, Parastal agency, NBFC, Developmental
institutions, mutual funds, private equity and promoters
Interview of senior/mid level officer and collect
annual reports
 Current status
Group Literature review Interview Annual
Report
collected
Literature Literature Got Got appointment
appointment but date is not
Identified Reviewed fixed
Bank (4) Identified done 1 2 Yes
Parastatal Identified done no
Agency (2)
NBFC (4) Identified done 1 2 Yes
Development Identified done 1 Yes
al institution
(2)
Mutual funds Identified done 1 2 no
Promoter (2) Identified Not yet 1
Investment Identified done NA NA
Risks
Risk Identified done NA NA
perception
Future plan
Collect the remaining annual reports (balance sheet)
Interview the remaining investors
Analyse the data
Rough draft
Final draft
 How self study, project and policy
assignment are connected

Investment Potential of
Identifying factors Urban Water Industry
Investment risk
determining risk for the Private Sector:
in urban water
perception of the Compilation of Views of
system Capital Market
investors in UWS Facilitators (CMFs):

Self Study Project Policy Assignment

 List of investors
Parastatal Bank NBFC Mutual Promoters Developm
fund ental
institution
s

MJP Public IDFC IDFC MF JUSCO LIC

sector

MUINFRA IDBI IL&FS Yet to find Jindal HUDCO

more Water

SBI L&T Infra Yet to find

more
Private IIFCL
sector

ICICI Bank
YES Bank