Public private partnership model in India needs a revamp: UR Bhat

In a chat with ET Now, UR Bhat, MD, Dalton Capital Advisors, shares his views on the land ordinance bill. Edited Ecerpts:


ET Now: There infrastructure and a lot of other sectors have caught whiff of how big a reform would the land ordinance bill be for them in terms of setting up projects. Is that the reason why that entire pack of power ancillaries, power, infrastructure etc. did so well yesterday? Is it a meaningful change that will really re-rate some of these companies as well?


UR Bhat: It probably takes some time for it to be sustainable. The problems that infrastructure and metal companies had in India was about resource allocation including land and coal. The government is going ahead with the reforms despite the problems that we had in the Rajya Sabha. That is a very good sign.


The government is committed to solving the problems of the infrastructure business. All said and done, if you really see, in infrastructure if the government is really harping on public private partnership. There are probably not more than 20 people who can partner with the government in putting up infrastructure projects.


All these guys are overextended as far as debt is concerned. There has to be some solution to these problems if there has to be some headway in PPP. The government is seized to the matter and I am sure they are putting their best foot forward to solve these problems.