The role of infrastructure development cannot be overemphasized. Infrastructural investments constitute a very large part of the capital formation in India today, and increasing role of the private sector both in form of PPPs and investments in regulated industries is imperative. Yet in many sectors where due to limitations in design and policy the developments have not been rapid enough and poor performance have resulted in a drag in the economy. Many of the design errors could have been anticipated with a more informed and involved design of the same. In this course we lay out the basis for interventions by government and participation of the private sector. We also bring out the changes necessary in the approach in a number of sectors, and thereby bring out the main issues that have constrained infrastructure. The course would benefit consultants, regulators, government officials, developers, financial institutions hoping to get right their approach to the design of policy, law, and frameworks, besides projects, the first time thereby avoiding the many iterations that projects/ the design go through.
Varieties of market failure: natural monopoly, lack of appropriability, and experience goods characteristic to identify sectors of infrastructure.
Responses to market failure: regulation, public ownership, incentive regulation and marketization, and newer forms of contracting
Sectors of infrastructure and their failure
Tariff principles, Congestion pricing
Public Private Partnerships – risk allocation and design considerations, financing PPPs, endogenous risk, contract adherence
Contracting, agreements and procurement
Infrastructure financing PPPs, financing instruments and structuring
The law and infrastructure
Issues in Infrastructure development today
Risks in the current policy (examples)
Land and infrastructure – Risks in acquisition, working of land markets in India
Case studies of infrastructure development in India
Officials of FIs, PPP cells, Government, developers, companies in infrastructure