All Infrastructure Projects may not have adequate Revenue Stream to attract Private Sector Investment. Accordingly,the Government should identify Projects which have a defined and larger than reasonable Rate of Return and tag them with Infrastructure Projects which have a less than acceptable ROI, on a Cross Subsidisation Model. This can be acgieved through proper Project Structuring, including Financial Strucuturing.
The Government can thus develop a larger number of Infrastructure Projects without deploying additional scarce financial resources. This will require a Pre Feasibility Study as regards the Revenue Streams and ROI from the Project. Thereafter, an attempt should be made to identify Projects which can be Cross Subsidised and not treat them as independent Projects, as also Projects having cut-off Project Cost say 50 Crore and above., as is being proposed.