The role of infrastructure development cannot be overemphasised. Infrastructural investments constitute a very large part of the capital formation in India today. And increase in the role of the private sector both in the form of PPPs and investments in regulated industries is imperative. Yet in many sectors, due to limitations in design and policy, the progress has not been rapid enough. And disputes and renegotiations have marred many sectors. Much of the limitations in design, including in financing could have been anticipated. In this programme we lay out the basis for interventions by government, and of participation of the private sector, and bring out the challenges in design. We also bring out the changes necessary in the current approach for healthy private sector participation, covering endogenous risks, besides contractual, financial and regulatory arrangements in a number of sectors. We expect participants to bring with them a live /ongoing case of regulation / policy or PPP framework / agreement that could be discussed and diagnosed to arrive at a workable solution. 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, upfront; thereby avoiding the iterations that projects in their design go through.
Through the case studies and the discussions the following concepts/ topics / issues would be covered and developed:
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, their characteristic and the market failures therein.
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, managers of companies in infrastructure, banks and financial institutions, infrastructure consulting firms, government and infrastructure verticals of consultancies, regulatory institutes and legal firms dealing in infrastructure.