One of the prime challenges on the growth front for successive
governments in India has been infrastructure development. And the
challenge has become even more daunting after several companies, which
were into building infra projects over the last few years, are
struggling to manage their own debt burden.
Since the Modi government has announced ambitious urban
development plans, financing and execution of these grand dreams will
prove to be the real test. The NDA government’s mega urban development
plans which are expected to cost Rs 98,000 crore — the Smart Cities
Mission, under which 100 smart cities would be built, and the Atal
Mission for Rejuvenation and Urban Transformation (AMRUT) for 500 cities
with outlays of Rs 48,000 crore and Rs 50,000 crore, respectively —
over the next five years will pose challenges to both the Central and
state governments, urban local bodies (ULBs) and private partners. While
there are specialised state-sponsored finance companies such as India
Infrastructurnone that cannot be solved with creative , detailed planning and executione Finance company, Hudco and sectoral fund raisers in power
and railways, the fund requirements are huge and over a longer period.There are financing and implementation challenges ahead but