It’s time for India to institute dedicated infrastructure law: IIFCL MD

New Delhi: IIFCL Managing Director PR Jaishankar on Thursday made a case for having a dedicated infrastructure law for protecting the interest of all stakeholders and giving a push to this important sector in realising the dream of making India a USD five trillion economy.

'Enforce contractual obligations & protect interest of all parties in making the infrastructure sector'

"Infrastructure projects are very long term and generational in nature. A holistic solution what we feel is to enforce the contractual obligations and protect the interest of all parties in making the infrastructure sector. Of course, it lies in instituting an infrastructure law," he said at an event to mark the 18th foundation day of India Infrastructure Finance Company Ltd (IIFCL).

"Many developed nations have such laws and perhaps, it's time for India to think about it," he said. He added that this will help make infra projects more bankable. "Banks and financial institutions would continue to play a critical role in financing greenfield infrastructure projects," he said.

IIFCL hopes to bring down NPAs to sub-2.5% level by March 2023

IIFCL has been playing a critical role and involved in 670 projects

Since 2015, there have been a slew of reforms, including revisiting model concession agreement, adequate land acquisition and faster clearances leading to reinvigoration of the infrastructure sector, he said. He added that these reforms have started bearing fruits.

"IIFCL has been playing a critical role and involved in 670 projects, 28 percent of Public Private Partnership projects in India, worth Rs 12 lakh crore," he said.

Last two to three years were instrumental in IIFCL's history with net worth increasing by 18 percent to Rs 12,242 crore, highlighting the institution's potential to meet the infrastructure funding needs.

"IIFCL aims to transform its image from that of last-mile lender to a preferred financier. We attempt to make a mark in the country not only as a financier for infrastructure projects but also in policy advocacy and aid and support the government in bringing about reform in regulatory environment necessary for scaling up and expanding infrastructure sector in new areas," he said.

"Building world-class infrastructure is the next big challenge for India's take off and IIFCL would continue to work in meeting financial needs of the capital-intensive sector," he added.

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