Infra projects need a leap of faith: Somanathan

Infrastructure Urban

Infrastructure projects cannot be funded like other projects and there are at least two characteristics of infrastructure projects that distinguish them from most other projects in a modern economy━they experience the phenomenon of public goods effects, and have long gestation periods, said Dr TV Somanathan, Secretary (Expenditure), Ministry of Finance, Government of India. “Infrastructure projects actually involve in their last decision-making stage a leap of faith and assumption that it will actually work.”

Somanathan was addressing a webinar on Tuesday (February 23) on infrastructure finance, the second in the Infra-Nirbhar webinar series organised by Construct