nd str and n rastr         t re     9.43
     and difficulties with contract enforcement. India     (iii) Scarcity of fund due to longer gestation
     needs a holistic housing policy which is capable to         period. With the help of Infrastructure
     resolve the existing constraints to the sector and          Investment Trusts, 5/25 Refinancing
     the issues of rental and vacant housing.                    scheme, debt restructuring things
                                                                 improved but not much. Since late
        recent challenges                                        2017-18, the Government is pursuing
                                                                 insolvency procedure (under the newly
     Infrastructure sector has been faced with some              enforced Bankruptcy and Insolvency Act)
     long-standing challenges in the country. In the             and things look taking pace.
     period of reforms Government aimed to involve         (iv) Weaknesses of the existing PPP models
     the synergy of the private sector into it. The public       also took a heavy toll. Though it has
     private partnership model was taking ground year            been improved by the new model of it—
     after year. But due to certain internal and external        hybrid annuity model (HAM). Though,
     factors the sector almost got derailed by late 2013-        the model was put in place for only road
     14. As per various Government documents these               sector it was notified for other infra
     factors are as given below:                                 sectors also by late 2017.
          (i) Project delays which cause high cost over-    (v) Slowdown in the economy kick-started by
              runs. Though, the situation has improved           the global financial crisis of 2008 together
              after the new Government took control              with a state of ‘policy paralysis’ prevailing
              but still around 427 such projects are             in the domestic economy since 2010
              lingering in the pipeline of approvals at          onwards. After the new Government took
                                                                 control the state of policy paralysis is no
              various states. By February, 2018, the
                                                                 more there but there are several complex
              Government announced to classify such
                                                                 legacy factors which need to be addressed
              projects into different sub-categories
                                                                 in an effective way.
              which can give right information (other
                                                           (vi) A typical ‘twin balance sheet crises’ taking
              than calling all of them as ‘stalled’
                                                                 grip over the economy (declared so by the
              projects).
                                                                 Economic Survey) by late 2016-17. Due to
         (ii) Delays in land acquisition. With the               this while on one hand the public sector
              Land Act of 2015 being withdrawn and               banks are unfit to promote lending (which
              an effective ‘land pooling’ policy put in          have been the lead lenders to the sector)
              place things have started improving in             hit with high non-performing assets
              this regard. Some states have surplus              (NPAs) on the other hand big private
              land in the pooling arrangement (such as           corporates are not eligible to borrow (due
              Andhra Pradesh).                                   to high losses) and invest in the economy.