Global InvestmentMumbai, August 31st, 2017

Global Investment in Indian Infrastructure

GRI Infrastructure India Club members and guests gathered for the first club meeting in Mumbai on August 31st. Constituents discussed global investment into infrastructure in India and looked at the opportunities in airports, ports, energy, rail and roads.

Members expanded upon their views, where some of the following points were raised;

Infrastructure Investment a long term game
Most Pension Funds / Funds / PE’s would like to back complete assets rather than isolated projects. Members believe that the key is to partner with the right developer company and back them up. Constituents reiterated that investment in infrastructure is not a short term business, but rather long term and over 20-30 years.

Road resurgence aiding infrastructure revival
Road Projects have witnessed positive practical developments. Changes have led to positive implications in addressing the bidding process and have worked well in favour of development. However, one member pointed out that Roads, PPP's and other projects have suffered due to sudden changes in policies and concessions by governments, changing the status quo and entire workings that have gone before.

Renewable Energy to the fore
The Energy Sector is in need of greater certainty, along with proper policies and regulatory backup. Members consented that renewable energy is one of the biggest opportunities within the infrastructure spectrum as India plans to implement 225GW of renewable energy generating capacity in the next five years. It was pointed out though that distribution in power sector has been a grey area and this is not being resolved.

Access to capital
Many feel that foreign money is easily available through the developer route, but emphasised the need for consistent policies as it was indicated that capital is not a core issue for infrastructure in India. Members stated that the cost of capital and debt funding had come down in the last three years and was at INR to INR as opposed to 5 years ago when they were looking at hedging the cost. Banks involvement was also discussed and some members felt that funding through ECB Dollars is unlikely and almost impossible.

Government’s role going forward
Consistency of policy, partnership, demand and supply need to match as today as some members felt there is a huge disconnect across the Roads and Ports sectors. Many felt that uncertainty, ambiguity and risk should be improved by the government.

Global Members

Amongst our members globally include:

                                                                                                                                                

Timetable

Thursday, August 31th

15:00pm to 15:30pm - Registration / Arrival


15:30pm to 16:30pm - Discussions


16:30pm to 17:00pm - Networking

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Venue

Grand Hyatt Mumbai Bandra Kurla Complex Vicinity Off Western Express Highway, Santacruz East, Mumbai, Maharashtra 400055, India
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