Issues relating to the financing of infrastructure investments in India 9. The importance of long-term debt financing can hardly be overstated owing to the longer pay-back period of infrastructure projects and delays due to complexities in the design, safety and environmental aspects, etc.
The development of a mature and vibrant corporate debt market is eminently suited for long-term committed funding to match the investment requirements of a long term risk-averse investors seeking regular returns after a lock-in period. Greater deepening in the non-government debt market with sound financial, legal, and regulatory framework would enhance the benefit of price discovery and risk diversification.