Quarterly Infrastructure Finance Review

The infrastructure finance project portfolio has posted a 36.9% growth on a YoY basis from September 2008 to September 2009 (the same was 25.7% from June 2008 to June 2009). The quantum of overall disbursement is Rs. 18.9 billion in this quarter which was Rs. 22 billion during the previous quarter.

The power generation sector remains the supreme beneficiary with the disbursement of Rs. 13.2 billion during the quarter under review as compared to Rs. 11.7 billion during the previous quarter. Though the disbursement in power generation has slightly increased no new project in this important sector has been reported. The telecom sector, which received substantial financing in the last quarter, remains dormant in the current quarter.

The level of private sector’s participation is very low as compared to other developing countries of the region and we are arguing through our reviews that a clearly defined PPP policy at the highest level is required for a number of important infrastructure sectors viz. water supply and sanitation, logistics, irrigation, ports, airport, etc. in line with a power policy which is in place for quite some time and has been attracting a significant amount of private investment over the years.

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