Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government of India for initiating policies that would ensure time-bound creation of world class infrastructure in the country. India has a requirement of investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. India is witnessing significant interest from international investors in the infrastructure space and is taking every possible initiative to boost the infrastructure sector. While India is making significant strides in the Infrastructure sector, what is needed is holistic and integrated approach and private sector participation in sustainability of outcomes.
This Thematic Seminar on Private Sector Participation & Innovation in Resource Mobilization is one of the lead-up events to the Asian Infrastructure Investment Bank (AIIB)’s 3rd Annual Meeting which is scheduled to be held on 25th and 26th June, 2018 in Mumbai. This one-day Seminar will be hosted by the Ministry of Finance, Government of India in collaboration with Research and Information System for Developing Countries (RIS) as knowledge partner in partnership with Federation of Indian Chambers of Commerce and Industry (FICCI). This will be held in Mumbai on 11th June 2018.
The Inaugural Session will be on “BRINGING PRIVATE SECTOR INTO INFRA SPENDING”, which touch upon the fact that the Infrastructure spends will have dipped in India, while most countries are keen to push ahead with additional spending to cure infra shortages. What are the innovations that need to be brought in at this stage? Various experts will be deliberating on this topic.
The Plenary I Session will ponder on the “RISKS FOR INFRA SPENDING”. For the private sector, an assessment of the risks that infra sector projects bring is crucial to decide on financing them. These risks include sponsoring risks, regulatory risks and market risks. These risks determine the pay offs that private companies will want to negotiate before contracting any projects. What has been the experience of the private sector in India to understand the risks and what do they portend going forward.
Plenary II Session will be on “BRINGING SOVEREIGN FUNDS AND MULTILATERAL INSTITUTIONS INTO THIS GAME”. Other than the private sector, the major source of infra financing are the Government and the Sovereign Funds. To bring out the best from them, the role of Multilateral Institutions become critical. As countries take on larger projects the presence of multilateral institutions also provides cross border technological support and the assurance of political stability that will assuage the demands of competing stake holders in those projects.
Plenary III Session on “REGULATORY CHALLENGES FOR DOMESTIC AND CROSS BORDER PROJECTS” Infrastructure Projects are not only becoming larger in scope, they are also spreading to sectors and regions that have Governance Issues. To make the Private Sector deploy money in the sector, it is essential then to enhance the role and the competency of the Regulators. Projects must satisfy climate and social concerns adequately as well as keep the costs of building those projects reasonable, for all of which a keen Regulatory Oversight is essential.
The Final Session will cover Risk – Reward Ratio for Private Sector – India is home to the second largest basket of Private-Public Partnership Projects in the world. There has been a world of experience with these projects across sectors and over time. Parsing through the risks, the support provided by the Government and the Multilateral Institutions and the Regulatory Oversight provides a huge lesson for going forward as the next round of infrastructure projects beckon. Different models are already coming-up to answer the specific question. Which models will adequately meet the risks yet proving adequate rewards to the Private Sector to tap financial institutions and capital markets again?
Panelists will include Senior Officials from the Centre and the State Government, representatives of Corporate, Banking & Financing And Regulatory Bodies. Mr. Rathin Roy, Member, PM’s Economic Advisory Council, Mr. Vivek Johri, Chief Commissioner, Custom, J.L.Nehru Port Trust, Mr. Arvind Singh, Principal Secretary, Energy, Government of Maharashtra, Mr. Agris Preimanis, Director, European Bank for Reconstruction and Development, Head of Kazakstan, Mr. Najeeb Haider, Principal Strategy Officer, AIIB, Mr. Sanjay Chadha, Additional Secretary, Ministry of Commerce, Government of Maharashtra, Dr. KV Pratap, Joint Secretary (IPF), Ministry of Finance, Mr. David Rasquinha, Managing Director, Export-Import Bank of India, Ms. Manju Rajpal, Secretary, Finance (Budget) Department, Government of Rajasthan, Mr. Saugata Bhattacharya, Sr Vice President, Axis Bank, Mr. Manoj Dubey, ED (FinancePPP), Railway Board, Mr. Sajjid Chinoy, India Economist, JP Morgan, Mr. Gavin McGillivray, Head, Department for International Development (DFID), UK Govt are a few senior officials who are likely to participate and deliberate on various issues in different Sessions during the Seminar
This one-day Seminar will bring together leaders from various organizations and Government to deliberate and share experiences for creating a sustainable future through sound infrastructure investment.