Question

Explain the problems of rural infrastructure in India.

Answer 1

hey!!

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problems :-

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The Challenge:-

• Even though the flow of investment for infrastructure has greatly improved still there are other challenges that encounter the infrastructure projects.

Financing:-

• Each infrastructure project comes with a huge capital expenditure and huge capital expenditure brings high risks and high expected returns. Long gestation periods and disrupted cash inflow have always been a major problem for any infrastructure project.

Financing:-

• Each infrastructure project comes with a huge capital expenditure and huge capital expenditure brings high risks and high expected returns. Long gestation periods and disrupted cash inflow have always been a major problem for any infrastructure project.

Regulatory Framework:-

• India lacks regulatory framework for infrastructure. Several projects overrun cost and time because of the state or central government policies like land acquisition environment clearances, finance approvals etc.

Soluti0n:-

Two important steps are required for the Indian Infrastructure Sector:-

• Firstly, we need to setup an independent regulatory body like SEBI for infrastructure. The primary role of this body would be to attract private investments and protect the investor from various risks.

• Secondly, we need to have an authority which should take care of sovereign obstacles. The basic role of this body will be to remove the obstacles for public projects and monitor the development of the project.

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