Despite adoption of numerous measures to streamline financing of infrastructure in the road sector, private investment has played a limited role. Discuss.

Indian Road network is expanding rapidly, with 30km of road construction everyday Reasons for success in Road Investment and Methods: i Model concession agreement - in road sector has standardized provisions to be met by public & private sector ii VGF Viability Gap funding - for economically viable project that does not reach financial viability iii Brownfield asset Monetization - with TOT model resulting in high returns iv INVITs - to pool in private investment in road structures

v New Initiatives like - National Monetization pipeline & National Asset Monetization plan STATISTICS No. of PPP projects in India: 501 Private investment limited Total Road investment CAGR: 22% Reasons for limited private investment: i Rising NPA - financial constraints shown by banks given the share of NPA has increased significantly to 20%. ii Time consuming land acquisition and clearance process - involving encroachment removal, religious relocation, utility shifting

iii Lengthy land acquisition & clearance process - damages goodwill in front of foreign investors iv Stretched balance sheet of Indian developers - due to overaggressiveness bidding, pending claims of NHAI, breach of commitment Private investment into building a robust infrastructure is a key to making India a $5 trillion economy by 2025. Thus efforts are needed for promoting sector specific financing