India’s infrastructure development has witnessed growing private sector participation in 2020-21 according to Infomerics Valuation and Rating Pvt Ltd, the noted SEBI-registered and RBI-accredited financial services credit rating company. However, requirements of infrastructure have surged because of inadequate coverage and service level, poor service quality, institutional delinquencies and high administrative costs, among other factors.
These are among the major findings of the Roads and Highways Industry Report: Trends and Prospects report released today by Infomerics Valuation and Rating Pvt Ltd. The report has revealed that while infrastructure financing underwent a paradigm shift in the post-reforms period, there is still a fair distance to traverse. There are also issues of poor maintenance and cost recovery, unsustainable resource management practices, high investment needs and project costs and low priority accorded to certain basic services.
While releasing the report, Dr. Manoranjan Sharma, Chief Economist, Infomerics Valuation and Rating Pvt Ltd said, “The report notes that the evolving pattern of the level of basic infrastructure indicates accentuation of regional imbalances and associated spatially uneven patterns in infrastructure across States because of deeply ingrained historical, demographic, structural and institutional factors, infusion of large and continuous investment and divergent priority of different State Governments.”