More use of PPP model in highway sector supports pvt infra investment: Moody's

Increased use of public-private-partnerships (PPPs) in India's highway sector supports private infrastructure investment, Moody's Investors Service said today.

"...Indian government's introduction of the hybrid annuity model (HAM) in 2016 -- as a variation of PPPs -- has triggered new investment inflows," the rating agency said in a statement.

Private investment in highway projects had been declining in recent years, amid issues such as slow project approvals and cost overruns, but HAM has resulted in new investments, Moody's said in a report titled 'Infrastructure - India: Highway PPPs gaining momentum, supported by government initiatives'.

Abhishek Tyagi, Moody's vice president and senior analyst, said, "Other sectors, such as the port, shipping and rail sectors, have also started looking at improving the PPP framework in order to attract private investment to fund India's substantial infrastructure needs."