Ratul Puri supports Lambert’s opinion on need to establish a dedicated institution
Asian Development Bank’s experts say that in spite of having political stability and labour force’s active presence, India is still not proceeding toward its goal of growth and development with the requisite speed due to the lack of world-class infrastructural facilities. The experts feel that in order to get involved in the finance business, India needs more institutions.
Don Lambert mentioned in his ADB blog that the Indian government needs to establish a proper institution, which would deal with credit enhancing corporate bonds, in order to bring more funds to the Nation. Don Lambert is a senior finance specialist at South Asia Regional Department of ADB.
He mentioned in his official blog, “Infrastructure is the elephant in the room. India’s economy has numerous strengths: dynamic entrepreneurs, political stability and a young labor force. However, its lack of world-class infrastructure is holding back growth and development.” He also mentioned that a dedicated institution like a bond guarantee fund, would promote efficiency and mitigate mission drift.
Lately, Ratul Puri’s Hindustan Powerprojects Pvt Ltd settled a Rs 1.3 billion project bond to refinance its 15-megawatt solar power plant in Gujarat’s Porbandar. Ratul Puri also chairs the Board of Directors of HPPPL and the man supports Don Lambert’s statement on the need to establish a wholly dedicated institution.
Lambert said India needs a bond guarantee fund owned by private institutions with minority state ownership despite a plethora of infrastructure financing initiatives.
India in the recent years has seen infrastructure debt funds, infrastructure investment trusts besides Reserve Bank allowing banks to provide partial credit enhancements.