The time is right to revamp India’s debt market, and give a boost to private investment in infrastructure, a sector that has been a virtual monopoly of the government since the Modi government took over, condemning the previous United Progressive Alliance government’s public-private-partnership model as a transfer of state treasure to tycoons and a loot of the banks.Paradigm shifts in policy call for both a rationale and opportunity. The rationale for overhauling the debt market has been clear for years. A stunted market for corporate debt starves different sectors of the economy of affordable credit, forces banks to lend to long-gestation infrastructure projects that short-maturity bank deposits are ill-suited to finance, converting any unanticipated delay in project implementation into a premature death sentence for the project.
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