Public-private partnership in BharatNet offers growth opportunity for infra sector: Ind-Ra

NEW DELHI: The setting up of an optical fibre network across the country under the BharatNet initiative through the public-private partnership (PPP) model offers a unique growth opportunity to the private infrastructure sector, and it will encourage the adoption of such model in more sectors, India Ratings and Research (Ind-Ra) said on Thursday.

However, the firm pointed out that risk allocation in concession agreements would be critical for the success of the PPP model and the availing of debt capital.

“Nature of risks will differ for BharatNet compared to traditional infrastructure assets because of the wide geographical area of the project, technology involved, competition in the telecom space, and associated risks,” Ind-Ra said.