It is a very commendable idea- Infrastructure finacing needs an Indian solution and formula replication of what has worked in the West may not always work. While the role of the private sector is talked about substantially, it has to be the government which has to play the role of the sponsor and the principal investor. It is true that pension funds and infrastructure assets are well matched for their return timelines but there is perhaps also a role for utilising the FDI corpus. A combination of FDI corpus and Pension Fund money is perhaps the best solution in my view. What is really important though is the role of the government in designing appropriate commercial structures that incentivises infrastructure investment and capital efficiency. The private sector as a minority contributor and implementor in a PPP style transaction design is also worth considering. As for the AITUC wanting to manage such a fund, I have a simple question: "What is the AITUC track record in managing such sums? Why should the ordinary pension fund contributor believe that AITUC is the best qualified entity to manage his/her money"?
This issue is really worth a debate. Ashutosh Shastri Director, EnerStrat Consulting London, England
