The central government is designing a fresh structure for PPP and Model Concession Agreement (MCA) for attracting more private investment in infrastructure domain like road, railways, where private participation has so far remained limited.
The infrastructure departments have received a directive from the finance ministry to identify potential projects for private partnership.
In order to address the substantial funding demands in infrastructure, there is need to increase participation of private entities, despite the government’s continued efforts to augment capital expenditure.
The planned MCA framework will function as a uniform guide for infrastructure departments and state-owned entities, allowing them to integrate specific sector-related clauses as necessary. The emphasis is on creating attractive and viable projects to attract private investors. This development coincides with a growing trend of increased private investments, with industry leaders anticipating a widespread resurgence in the forthcoming year.
