The issue of pricing is crucial in view of the political sensitivity, while also simultaneously ensuring the viability of the project. Managing the transition from state-subsidized services to market based pricing is crucial as the prices cannot be raised suddenly and indiscriminately, but the realizations have to be remunerative and based on commercial considerations.
Further, as the infrastructure projects are long duration projects, it is important to have an inbuilt mechanism in the services/pricing contract for a hike in pass-through of price hikes to the end users on account of increase in input prices. I would like to highlight a disquieting practice that has come to characterize the usage of infrastructure services.