presentation on infrastructure financing
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8/7/2019 PRESENTATION ON INFRASTRUCTURE FINANCING
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PRESENTATION ON :PRESENTATION ON :
´INFRASTRUCTURE´INFRASTRUCTURE
FINANCING µFINANCING µ
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INTRODUCTIONINTRODUCTION
INFRASTRUCTURE :INFRASTRUCTURE :
Definition :Definition :
Underlying basic buildingUnderlying basic building, institutions and facilities, institutions and facilities
or other essentialor other essential
element necessary toelement necessary to
sustain and enablesustain and enable
growth and developmentgrowth and developmentof community .of community .
Features :Features :
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OBJECTIVESOBJECTIVES
Highlight importance of finance for the growth andHighlight importance of finance for the growth anddevelopment of infrastructure sector .development of infrastructure sector .
Activities involve in infrastructure sector Activities involve in infrastructure sector
Government support for promoting privateGovernment support for promoting privateinfrastructure financinginfrastructure financing
Hidden risk associated with infrastructure financingHidden risk associated with infrastructure financing
Overview of urban infrastructure in IndiaOverview of urban infrastructure in India
To understand evaluation of BOT project with the helpTo understand evaluation of BOT project with the helpof BOT project with the help of road studyof BOT project with the help of road study
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RESEARCH METHODOLOGYRESEARCH METHODOLOGY
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LITRATURE REVIEWLITRATURE REVIEW
Various infrastructure sectorsVarious infrastructure sectors
Construction RailwayConstruction Railway
Transport Sector Transport Sector
Water WaysWater Ways Airport Airport
SeaportSeaport
Pipeline TransportationPipeline Transportation
TelecomTelecom Power Power
EnvironmentalEnvironmental
HousingHousing
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CONT«.CONT«.
Mechanism for funding of infrastructure projectMechanism for funding of infrastructure project
Financier
Receipt of Funds
Bodies ExecutingInfrastructure Projects in
India
Funding to Infrastructure
Construction Companies
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CONT«.CONT«.
Methods Of FinancingMethods Of Financing
TraditionalTraditional
NewNew
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CONT«.CONT«.
Evaluation Of Financial Viability Of BOTEvaluation Of Financial Viability Of BOT ± ±Road Project :Road Project :
BOT SchemeBOT Scheme
Financing BOT ProjectFinancing BOT Project
Construction PeriodConstruction PeriodConcession PeriodConcession Period
Estimate Annual Cash FlowEstimate Annual Cash Flow
Financial AnalysisFinancial Analysis ± ±
NPVNPV
IRRIRR
Payback PeriodPayback Period Acceptance Criteria Acceptance Criteria
Risk And UncertaintiesRisk And Uncertainties
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ANALYSISANALYSIS
The project is setup as a separate entityThe project is setup as a separate entity
Sponsor company promote the projectSponsor company promote the project
Project company employs high debt equity ratioProject company employs high debt equity ratio
Long Term Funds CommitmentLong Term Funds Commitment
Inherent Project RiskInherent Project Risk
Opportunities in Urban infrastructureOpportunities in Urban infrastructure
Problems in Urban infrastructureProblems in Urban infrastructure
Government take active part to encourage entrepreneur :Government take active part to encourage entrepreneur :
Land acquisitionLand acquisition BTLO modeBTLO mode
Give special laws for financingGive special laws for financing
Tax benefitTax benefit
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LIMITATIONSLIMITATIONS
Inadequate coverage and service levelInadequate coverage and service level
Poor quality of service to the consumer Poor quality of service to the consumer
Inefficient financial and managerialInefficient financial and managerialresourcesresources
High nonHigh non--revenue componentrevenue component Inefficient operations and maintenanceInefficient operations and maintenance
High investment needs and project costHigh investment needs and project cost
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RECOMMENDATIONSRECOMMENDATIONS
Encouragement to domestic and foreignEncouragement to domestic and foreign
financial investor for equity capitalfinancial investor for equity capital
Encouragement to infrastructure focusedEncouragement to infrastructure focused
NBFCNBFC
Introduce local benefit tax for urbanIntroduce local benefit tax for urban
infrastructureinfrastructure Establish project working groupEstablish project working group
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