Leveraging Public-Private Partnerships to Fund Infrastructure Projects in India

Abstract

India has been afflicted by a severe lack of infrastructure. Because it thinks the public-private partnership (PPP) model is the
most effective way to bridge this gap, the Indian government has launched a number of projects in this area. This essay
discusses the foundations of PPP and how it functions in India. One of the primary issues is funding for infrastructure. This
research paper discusses some of the problems that beset infrastructure finance in India, including an over-reliance on
commercial banks for debt repayment, a lack of funding from infrastructure finance firms, difficulties with external
commercial borrowing, a lack of mezzanine financing, the partial availability of insurance, pension, and provident funds,
and non-financing issues.
Other recent innovations like debt bonds for infrastructure, relaxed regulations for borrowing from the outside world, and
equitable departure plans are all examined. The study suggests several financial changes that are required for PPP finance in
India, such as raising the cap on funding for viability gaps, permitting balloon payments, permitting foreign direct
investment, promoting corporate bonds, and creating infrastructure corpuses