The UK India Infrastructure Financing Bridge (UKIIFB) Report

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The UKIIFB Year-1 Report seeks to build upon the diverse investment and financing system that is long-term, stable, and sustainable with manageable risks. The findings from the UKIIFB Year 1 Report reflect a pragmatic roadmap toward unlocking international capital: developing standardised, globally benchmarked project preparation processes; recommendations to broaden India’s Detailed Project Report (DPR) to include full-lifecycle risk analysis, resilience, and value-for-money considerations; piloting stronger risk-sharing and revenue protection frameworks; and the enhancement of digital monitoring and transparency across the infrastructure ecosystem. The report also presents case studies from flagship expressway and ring road projects, and highlights the importance of creating an investor-centric pipeline, market-tested through the new Project Assessment Framework.

The Year 1 Report details key achievements and recommendations, including:

  • Development of a Project Assessment Framework clarifying investor priorities across highways and rapid transit sectors;
  • Advancing sustainability and resilience, integrating climate adaptation and ESG frameworks into project design;
  • Enhancing transparency and risk mitigation to reduce perceived investment uncertainties;
  • Safeguarding investor returns through improved revenue protection and streamlined repatriation mechanisms;
  • Building cohesive project pipelines and fostering long-term relationships with UK infrastructure sponsors;
  • Embracing digital infrastructure to improve governance and monitoring, enabling greater investor confidence.

 

About UKIIFB

The UK-India Infrastructure Financing Bridge (UKIIFB) is a collaborative initiative between India and the UK to unlock investment for Indian infrastructure projects. Launched in September 2023, the UKIIFB is co-led by India’s policy think-tank NITI Aayog and the City of London Corporation. The initiative aims to connect global investors with sustainable infrastructure opportunities in India.

What are the Key Objectives of UKIIFB?

  • Secure long-term investment: Mobilize international private sector investment to help fund India’s ambitious infrastructure development plans. With a projected need of USD 4.5 trillion by 2030, domestic resources alone are not enough.
  • Share expertise: Leverage the City of London’s experience in financial and project management to help structure Indian infrastructure projects.
  • Enhance project structuring: Improve the preparation of projects to meet international standards for transparency, risk management, and environmental, social, and governance (ESG) frameworks.
  • Facilitate knowledge exchange: Develop best practices to make sustainable infrastructure projects more attractive and “investable” for international investors.
  • Reduce barriers to investment: Identify and address issues that hinder foreign private sector investment in Indian infrastructure.

What impact will UKIIFB have on bilateral relations?

The UKIIFB strengthens the financial and economic partnership between India and the UK by:

  • Promoting sustainable development: Prioritizing environmentally friendly projects that align with the UN Sustainable Development Goals.
  • Unlocking capital: Providing a conduit for long-term “patient capital” to flow into large-scale projects in India.
  • Boosting investor confidence: Improving project preparation and transparency helps build trust with international investors.
  • Driving shared prosperity: The initiative aims to foster economic growth, job creation, and shared prosperity in both countries.
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currentaffairs4upsc
Author: currentaffairs4upsc

UPSC

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