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Stuff Abt Infra-30 Words Financial Analysis/feasibility Analysis/due Diligence - 2-3 Paras Objective of Project Summary of Results

The document discusses infrastructure in India and its importance for sustaining economic growth. It notes that infrastructure deficits can limit growth and achieving development goals. The document also examines financing needs for infrastructure projects and various funding sources being utilized.

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Payal Chauhan
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42 views

Stuff Abt Infra-30 Words Financial Analysis/feasibility Analysis/due Diligence - 2-3 Paras Objective of Project Summary of Results

The document discusses infrastructure in India and its importance for sustaining economic growth. It notes that infrastructure deficits can limit growth and achieving development goals. The document also examines financing needs for infrastructure projects and various funding sources being utilized.

Uploaded by

Payal Chauhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Stuff abt infra30 words

Financial analysis/feasibility analysis/due diligence --- 2-3 paras


Objective of project
Summary of results





















Infrastructure is basic physical and organizational structures needed for the operation of
a society or enterprise, or the services and facilities necessary for an economy to function. It can be
generally defined as the set of interconnected structural elements that provide framework supporting
an entire structure of development. It is an important term for judging a country or region's
development.
The term typically refers to the technical structures that support a society, such as roads, bridges, water
supply, sewers, electrical grids, telecommunications, and so forth, and can be defined as "the physical
components of interrelated systems providing commodities and services essential to enable, sustain, or
enhance societal living conditions."
Infrastructure is the key to sustaining Indias aggressive economic growth.
The importance of infrastructure for sustained economic development is well recognized. High
transaction costs arising from inadequate and inefficient infrastructure can prevent the economy from
realizing its full growth potential regardless of the progress on other fronts. Physical infrastructure
covering transportation, power and communication through its backward and forward linkages
facilitates growth, social infrastructure including water supply, sanitation, sewage disposal, education
and health, which are in the nature of primary services and has a direct impact on the quality of life. The
performance of infrastructure is largely a reflection of the performance of the economy.
The lack of infrastructure in many developing countries represents one of the most significant
limitations to economic growth and achievement of the Millennium Development Goals
(MDGs). Infrastructure investments and maintenance can be very expensive, especially in such as areas
as landlocked, rural and sparsely populated countries.
Therefore, any new infrastructure project must be weighed on financial standards











The fast growth of the economy in recent years has placed increasing stress on physical infrastructure
such as railways, roads, highway, ports, metro, airports, irrigation, electricity, and urban and rural water
supply and sanitation, urban and rural development all of which already suffer from a substantial deficit
from the past in terms of capacities as well as efficiencies in the delivery of critical infrastructure
services. The pattern of inclusive growth of the economy projected for the Eleventh Plan (2007-12), with
GDP growth averaging 9% per year can be achieved only if this infrastructure deficit can be overcome
and adequate investment takes place to support higher growth and an improved quality of life for both
urban and rural communities. Planning Commission has projected investment requirement to be Rs.
40,99,240 crore, which would be twice the investments for the Eleventh Plan and estimates
infrastructure spending of ($1000000000000) $1 trillion. The numbers clearly indicate that there has
been a rise in infrastructure development and with the growing need for infrastructural development
there would be need for rise in sources of funding as well. Thus the government has been inviting
private participation in funding capacity building by way of Public Private Partnerships (PPP), commercial
banks lending, take out financing, infrastructure financing institutions, infrastructure debt funds,
external commercial borrowing, foreign direct investments etc and has been extending tax holidays to
make funding feasible for lenders and borrowers. To stimulate public investment in infrastructure, a
special purpose vehicle India Infrastructure Finance Company Limited (IIFCL) was set up for providing
long-term financial assistance to infrastructure projects.
After reading this project report we are able to know that:
What is the current situation in infrastructure sector in India?
Source of funding (financing)?
Issues in Infrastructure Financing?
Funding gap in infrastructure sector?
Criteria of financing in infrastructure sector in India?
Role of RBI and central government in infrastructure?
PPP projects and BOT projects in infrastructure sectors?

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