As per Morgan Stanley projections, the power sector in India needs $120 billion over a period of 15 years, the telecommunications sector needs $50 billion investment and transport other than railways requires $20 billion in next five years. Investments are also needed in water, oil and gas and pipelines. While India has clearly understood that PSUs alone cannot deliver the financing and started inviting private sector participation, much more needs to be done in the area, Sheldon said, speaking on new approaches for funding mega projects.

However, to compete with other countries for the resources, Trainor felt India would have to create appropriate bankable security structures with or without central government participation. At the same time it should also create self-financing propositions like power tariff rationalisation, enforcement of toll and water rates, he felt.

Highlighting the privatisation processes in countries like Singapore, Korea, Malaysia, Philippines and Thailand, the Morgan Stanley executive director said the key was transparency of the regulatory framework, stability of industry structure and enforcement of contractual agreements among other things. He said revenue bond structures, portfolio project financing are essential instead of waiting for debt financing.