The infrastructure sector is yet to get back on the growth path. The Government needs to sort out some of the major issues such as liquidity and project delays, Hemant Kanoria, Chairman and Managing Director of Srei Infrastructure Finance Ltd, said.

While the Government has addressed most of the concerns of the road sector over the past two years, public, private partnership (PPP) projects, which play a crucial role in the growth of the country’s infrastructure, have not gathered pace.

The Government needs to revive investor and developer interest in PPP projects, he said. Speaking at Indian School of Business here, Kanoria said, “More than ₹5,00,000 crore is locked up in disputes relating to infrastructure. While there have been efforts to bring about changes in various arbitration clauses, the Infrastructure Disputes Redressal Tribunal could make a big difference.” “While all the players in the infrastructure sector are facing liquidity concerns, imagine the impact of such a huge amount being unlocked. Even if there is half of what is disputed, it could be a major boon to the sector,” Kanoria told BusinessLine .

Referring to the road sector where there was a huge interest in the past, he said developers, of late, have become wary of taking up PPP mode projects due to uncertainty and possible delays. Instead they are focussing on EPC contract with assured returns.

Kanoria said, “The power sector, which has been a major thrust area for the Government over the past two decades, continues to face problems of fuel supplies, both coal and gas. A number of projects are stranded and funds locked. While some concerns have been addressed, the free power model for agriculture is something that requires a fresh look.”

On the black money declaration drive, he said instead of the Government asking people to pay up 45 per cent upfront, it could have considered another model where infrastructure or agriculture bonds are issued with the funds thus declared. In return, they can be issued 10-year bonds with no returns for five years.

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