Advertisement
SEBI Chairman Tuhin Kanta Pandey stressed the importance of accelerating asset monetisation in sectors such as railways, roads, airports, energy, petroleum, gas, and logistics to channel more investor money into infrastructure. Speaking at an event organised by NaBFID, he highlighted the role of Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), public-private partnerships, and securitisation as funding mechanisms. Pandey also pointed out that state governments need to prepare monetisation plans, and broadening the investor base is vital to reduce reliance on banks and government budgets while ensuring transparency and governance.
SEBI Chairman Tuhin Kanta Pandey has highlighted the need to speed up the monetisation of government-owned assets in major infrastructure sectors including railways, roads, airports, energy, petroleum, gas, and logistics. Speaking at an event organised by the National Bank for Financing Infrastructure and Development (NaBFID), Pandey explained that faster asset monetisation can attract private investment into infrastructure projects and provide an alternative funding source beyond government budgets and bank financing. Advertisement
Pandey noted that many state governments have not yet formulated asset monetisation plans, and addressing this gap could unlock additional resources for infrastructure development. He stressed that infrastructure projects require large-scale funding, which cannot be sustained solely by banks or government allocations.
He highlighted that monetisation could be achieved through various instruments such as InvITs, REITs, public-private partnerships, and securitisation. Citing progress in municipal bond markets, he mentioned that since 2017, 21 municipal bond issuances have raised INR 3,134 crore. However, he emphasised the need to expand the investor base to avoid concentration risks and tap into a variety of market instruments like corporate bonds, index-linked securities, and municipal bonds.
Pandey also pointed out the role of capital markets in enforcing transparency, governance, and accountability in infrastructure projects. Independent audits, disclosure requirements, and investor scrutiny help maintain quality and credibility, making markets vital for sustainable infrastructure development.
Rajkiran Rai, Managing Director and Chief Executive of NaBFID, acknowledged concerns over declining participation from scheduled commercial banks in infrastructure lending. While non-bank financial institutions and infrastructure debt funds are growing at around 10%, bank lending has slowed, requiring efforts to encourage greater bank involvement.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
