Infrastructure financing and transportation development in northern India

Abstract

Transportation Infrastructure contributes towards high Economic Growth thus making the subject relevant to academicians and policy makers. The literature lacks holistic study in this domain therefore the present research is an endeavour to fill the gap. newlineThe objectives of the study encompassed examining the trends in financing of Transportation Infrastructure, its relationship with Economic Growth, identifying the Sources of Financing; examine the Critical Risk and Success Factors for the projects. To accomplish the considered objectives, the present study employed various techniques like charts, panel data regression, tables, multinomial logistic regression and Structural Equation Modelling respectively on the data set under consideration. newlineThe findings of the study revealed that there has been an increasing trend in financing of transport projects through different models with EPC having the maximum flow of funds. Further, the transport development had a positive and significant effect on the economic growth of the north Indian states. newlineThe projects financed through the EPC model used Government Grants as a major funding source while for the other two methods, PPP and private the study relied on Loans from banks more. Projects financed by EPC had major Social risks while PPP projects had major Economic Risks that affected their financing while for successful financing of EPC projects Financial Factors were major considerations and for PPP Technical Consideration was important. Finally, the study assimilates the inputs for policy consideration with a view to infusing new dimensions in the financing of Transportation Infrastructure projects in Northern India. newline newline