The Infrastructure Finance Secretariat (IFS) of the Department of Economic Affairs, Ministry of Finance, Government of India, in collaboration with the Government of Madhya Pradesh, recently conducted an infrastructure outreach workshop in Bhopal on May 24th and 25th, 2023. This workshop was the fourth in a series of outreach workshops aimed at engaging with state governments, union territories, and central infrastructure ministries to address the challenges faced in implementing large-scale infrastructure projects.
The two-day workshop began with an inauguration ceremony attended by Shri Ajit Kesari, Additional Chief Secretary – Finance, Government of Madhya Pradesh, who highlighted the importance of developing a long-term vision for infrastructure development. He stressed the need to understand the needs and aspirations of citizens and prioritize identified requirements. Exploring alternative models and challenging existing practices is crucial for optimal resource utilization.
The workshop witnessed the participation of over 60 senior officials from the state governments of Madhya Pradesh, Jharkhand, Odisha, Rajasthan, West Bengal, Dadra & Nagar Haveli, Daman & Diu, as well as officials from key central infrastructure ministries including the Ministry of Road Transport and Highways, Ministry of Housing and Urban Affairs, and Ministry of Health & Family Welfare.
The workshop focused on key areas of infrastructure development and financing. Discussions revolved around challenges, possible solutions, and the promotion of private sector participation in infrastructure projects. Shri Solomon Arokiaraj, Joint Secretary of the Department of Economic Affairs, highlighted the importance of bringing together officials from the central and state governments, along with private sector stakeholders, to deliberate on infrastructure development challenges and potential solutions.
Representatives from various organizations, including SEBI, NIIF, SBI Capital Markets Limited, IFC, NIIF – Infrastructure Finance Limited, KPMG, and IFC, provided insights from the lender’s and private sector’s perspective on financing infrastructure projects.
Shri Baldeo Purushartha, Joint Secretary of the Department of Economic Affairs, provided information about the Infrastructure Investment Policy and Project Development Facility (IIPDF) and Viability Gap Funding (VGF) schemes initiated by the Government of India. These schemes aim to support project sponsoring authorities in project preparation and bridging the financial gap to make infrastructure projects economically viable.
The workshop featured panel discussions on urban and social infrastructure, the need for public-private partnership policies at the state level, and sessions on the implementation of the GatiShakti National Master Plan, the National Infrastructure Pipeline (NIP), and ongoing capacity building initiatives carried out in partnership with premier institutes.
The second day of the workshop focused on resource mobilization and infrastructure financing. Sessions covered topics such as project financing through term loans, patient capital, and emerging alternate finance structures like municipal bonds and InvITs.
The workshop aimed to facilitate dialogue between the central and state governments, private sector experts, and academics associated with the infrastructure sector. It sought to spread awareness about various schemes, financial instruments, and infrastructure trends in India. This workshop in Bhopal marked the fourth event in a series of state outreach workshops organized by the Department of Economic Affairs, with the previous workshop held in Varanasi in 2022.
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