Page 31 - BFSI CHRONICLE 10 th Issue (2nd Annual Issue ) 23062 COPY.indd

BFSI Chronicle, 2 Annual Issue, 10 Edition July 2022
nd
th
the total expenditure, with road Sector 18%, widen and deepen the Infrastructure funding
urban infrastructure at 17% and railways at market.
12%. In the field of renewable energy India is H. Challenges
already doing well and has revised its target for
renewable energy generating capacity to 500 With their distinctive characteristics, of long
gestation period, large capital costs, and
GW by 2030. Keeping in view its commitment at
international level for environmental protection dependence on external regulations, the
against global warming fresh opportunities infrastructure sector has inherent challenges
are emerging in battery storage and green to be dealt with. Delays in completion of the
hydrogen. With growing urbanization, in projects, cost overruns and stalled projects are
seen as issues, needed to be sorted out. Non
line with holistic overall development of the
country, additional opportunities in the field availability of Right of way/land in case of
of urban infrastructure and redevelopment of road projects, delays in environmental and
railway stations are bound to arise. other clearances , reduced level of revenues
,non availability of fuel , inadequate resources
For garnering additional funds, to be recycled with promoters and delays in dispute resolution
for further development of infrastructure, the with authorities are some of the adverse factors
National Monetization Plan has been rolled afflicting this sector which have also lead to
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period 2022-2025 coterminous with NIP. Road are required be dealt with in a holistic manner
and Railways are going to be major sub sectors with suitable reforms and changes In processes
for this initiative. and procedures at various levels to ensure more
efficiency and effectiveness
Infrastructure Investment Trusts (InvITs) have
emerged as a major mechanism of Monetization I. Conclusion:-
of Road assets, since they are more like Infrastructure is the backbone of the Indian
mutual funds with wider participation and are economy and going forward it is going to play
commercially more efficient from investor’s still more significant role in the entire ecosystem
point of view. with implementation of comprehensive policies
and programs of the Government of India. All
New Alternate Avenues of infrastructure
the stakeholders including the, government
funding are emerging, since the total agencies, financial Institutions, existing and
requirement is much larger than the current
resources available. To supplement this effort, potential entrepreneur developers need to
contribute their mite in this direction. while
National Bank For Financing Infrastructure there are ample opportunities arising, due to
and Development (NABFID) has been set up
global pressures for green and sustainable
by the Government with an initial share capital growth, the challenge need to be dealt, with in

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O DF FURUHV RYHU \ HDUV a systematic manner. Suitable Reforms in the
matter of regulatory guidelines and enabling
New sources of funding also include environment for additional sources of funding
Infrastructure debt funds (IDFs), Securitisation, through banks and other avenues need to
Refinancing, sovereign green Bonds and credit be explored for infrastructure sector to truly
enhancement guarantees which will further contribute towards our cherished goals.
The Institute Of Cost Accountants Of India

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