The Senior Analyst Jan. 2014 | Page 17

THE SENIOR ANALYST played an increasingly important role in aiding the government meet the investment requirements. Most of these funds have come through Scheduled Commercial Banks (SCBs). Though banks have had to meet most of the financing needs of infrastructure sector but they are typically not designed to do the same. The long term loans needed by infrastructure projects have been financed by short-term deposits leading to asset liability mismatch for banks in many cases. Going forward, banks alone will not be able to meet the massive requirements of this sector. Hence, new avenues to raise finance are the need of the hour. Public private partnerships have been successful in many cases but serious shortcomings are present on that front too. The investment through private sector can only increase from here, wi Ѡ