New Delhi, September 9 (Daily Kiran) : India must adopt a monetization model to attract private capital in the rail, urban, and other infrastructure sectors, according to Suresh Goyal, Director General of the National Council of Applied Economic Research (NCAER). Speaking at the annual infrastructure summit organized by the Confederation of Indian Industry (CII) in New Delhi, Goyal highlighted the need to expand India’s infrastructure monetization strategy beyond just roads.
He stressed that new models, such as Public-Private Partnerships (PPP) and concession frameworks, are essential for bringing private investment into railways, strategic infrastructure, and urban connectivity. Goyal pointed out that India is at a strategic juncture in infrastructure development. The monetization of the road sector has demonstrated that a well-structured concession framework can attract investors, yet this model has not been successfully implemented in other sectors.
Goyal referenced the National Highways Authority of India’s (NHAI) concession framework. He noted that the primary risk in highway projects is revenue loss due to the emergence of competitive routes. To mitigate this, the current framework establishes target revenues. If actual revenues fall short, the concession period can be extended; conversely, if revenues exceed expectations, the period can be shortened. He mentioned that this model has been embraced by global investors and has significantly aided in the monetization of NHAI assets. The challenge now lies in applying this successful framework to railways and other sectors.
During the summit, Partha Sarathi Reddy, Director of the PPP Program at NITI Aayog, remarked that the PPP ecosystem is expanding beyond highways, ports, and aviation to include railways, healthcare, solid waste management, and waterways. He emphasized the need to determine the appropriate PPP model based on the unique characteristics and risk profiles of each asset.
B.V.N. Rao, Chairman of the CII Infrastructure Council, stated that while PPP has traditionally meant Public-Private Partnership over the last three decades, it should now symbolize resilience, patience, and dedication for the future. He warned that delayed projects represent more than just stalled assets; they also signify lost jobs and slow progress. For private capital to flow, completing projects is as crucial as generating innovative ideas.
Vinayak Chatterjee, Chairman of the National Committee on PPP at CII, identified two major obstacles: the lack of a reliable and sufficient shovel-ready project pipeline and the absence of equal opportunities for the private sector. He highlighted the need for a project pipeline worth approximately ₹45.6 lakh crore over the next five years.
Chatterjee proposed eight reforms, including institutionalizing ‘3P India,’ establishing an independent sector regulator, assigning NABFID the responsibility for mega-project frameworks, implementing a plug-and-play model, and creating separate infrastructure funds.
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