Sectors such as roads (estimated investment of Rs 20 lakh crore), urban & housing (Rs 17 lakh crore), railways (Rs 14 lakh crore), conventional power (Rs 12 lakh crore) and renewable energy (Rs 9 lakh crore) together account for over 70 per cent of the total envisaged investment of over Rs 100 lakh crore by 2025, according to the NIP. The proportion of financing between the central and state governments is also expected to vary widely depending on the sector. Asset aggregatorsComing back to the larger issue of infrastructure financing, monetisation and transfer of existing infrastructure assets and projects to financial aggregators and asset operating companies has emerged as one of the prominent options in recent years. The National Infrastructure and Investment Fund’s partnership with Roadis, a big asset aggregator in Europe, for road and highway projects in India is a typical example. However, to facilitate these options, it is important that the existing infrastructure assets are financially viable.

Source: The Telegraph January 26, 2020 19:52 UTC