Potential Benefits
- Funding for NIP: Estimates Rs. 6.0 lakh crores, funding around 14% of Central Govt. outlay in NIP.
- Unlocking Value: Unlocks value of investments in brownfield public sector assets.
- Attracting Capital: Taps institutional and long-term patient capital.
- Further Investment: Leverages unlocked capital for further public investments.
- Efficiency: Aims for overall paradigm shift in infrastructure operations, augmentation, maintenance.
- Private Sector Expertise: Leverages private sector’s resource efficiencies and adaptability.
- Socio-Economic Growth: Delivers socio-economic growth and quality of life.
- Real-time Monitoring: Through asset monetization dashboard.
Risks
- Lack of Identifiable Revenue Streams: In various assets.
- Capacity Utilization: Level of capacity utilization in gas and petroleum pipeline networks.
- Dispute Resolution: Mechanism for resolving disputes.
- Regulated Tariffs: In power sector assets.
- Low Investor Interest: In certain assets (e.g., National Highways below four lanes).
- Misconception: Public perception that tariffs will increase (though regulated).