January 20, 2020
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The 'Generic Difficulties' Mentioned Under 'General Investor Concerns' In The Us

The 'Generic Difficulties' Mentioned Under 'General Investor Concerns' In The Us
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"Infrastructure projects are too often politicised. Despite repeated assurances that a national 'consensus' is in place, political leaders cannot resist invoking failed 'populist' policies (eg: free power to the poor).

"An extremely slow project negotiation/approval process--speed is not rewarded, negotiating prices down to the last paise/penny is.

"A lack of coordination between Centre and state--While the devolution of decision-making to the states is helpful to some extent, there remain overarching issues which often must be addressed by the Centre. Lack of communication between the state and Centre can unduly delay and complicate project approvals.

"Lack of policy coordination between various ministries when more than one is involved, eg: ministries of power/petroleum/finance regarding the liquid fuel policy for power plants.

"Signed contracts should not be reopened if there is a policy change, existing contracts should be grandfathered under the previous policy or a commercially reasonable timeframe should be proposed to begin compliance with the new policy.

"Although improvement has been noted, there is continued reluctance on the part of the government to take into account the views of the affected private sector when formulating policy decisions. More transparency regarding the data and process used in reaching policy decisions would also be helpful."

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