Source: BloomberQuint
India's infrastructure sector has witnessed a steady
increase in investor interest over the recent past, especially in
operational renewables and road projects. To put things into
perspective, 35 percent of all private equity and venture capital
investments in the first eight months of 2019—which has
already surpassed the all-time high recorded in 2018—is
focused on large infrastructure projects. Road deals worth an
estimated Rs 13,000 crore or $1.8 billion have been announced in
the first six months of the present fiscal year.
Several factors have contributed to heightened investor
appetite. From an investors' perspective, such projects are
free of construction and pre-development risks and offer a low-risk
moderate-return profile, while developers (both government and
private sector) can monetise existing assets, potentially to pare
debt or raise fresh capital. It is interesting to note that a
significant portion of investor interest is
