It’s time we had a dedicated law on infrastructure in India: IIFCL MD

Speaking at an event to mark the 18th foundation day of the state-owned lender, Jaishankar said that the organization would position itself as a leading innovative infrastructure lender with a focus on new products and new structures.

Jaishankar said he would like to see an infrastructure law in the country. “Perhaps it is high time that we have a systematic law enacted which can actually protect all stakeholders in the system from private concessionaire to the public authorities in terms of ensuring quality, ensuring appropriate pricing for the end users and future investors,” he said.

Jaishankar said all the stakeholders have to be protected in the long term as projects are meant for generations. The original provisions and covenants of the infrastructure and procurement contracts must be protected, must be enforceable and they must stand the test of time, he said.

News agency PTI reported quoting Jaishankar that many developed nations have such laws and perhaps it’s the time that India also thinks about that. He said this will help make infra projects more bankable.

Jaishankar also said that majority of the infrastructure investments today is from the government side and that it has to be aptly supplemented by the private sector.

Since 2015, there have been a slew of reforms, including revisiting model concession agreement, adequate land acquisition and faster clearances leading to reinvigoration of the infrastructure sector, he said, adding these reforms have started bearing fruits.

IIFCL has been playing a critical role and involved in 670 projects, 28% of public private partnership projects in India, worth ₹12 trillion, he said.

“IIFCL aims to transform its image from that of last-mile lender to a preferred financier. We attempt to make a mark in the country not only as a financier for infrastructure projects but also in policy advocacy and aid and support the government in bringing about reform in regulatory environment necessary for scaling up and expanding infrastructure sector in new areas,” he said.

Building world-class infrastructure is the next big challenge for India’s take off and IIFCL would continue to work in meeting the financing needs of the capital intensive sector, he added.

IIFCL offers long term finance to projects across several sectors including roads, highways, ports, power, water supply, gas pipelines and education under different modes including re-financing to banks and public financial institutions.

PTI contributed to this story