Securitization in India: Managing Capital Constraints and Creating Liquidity to Fund Infrastructure Assets

India needs to spend close to Rs43 trillion (about $646 billion) on infrastructure through to 2022. Such a staggering requirement cannot be met though traditional sources such as public sector bank loans. India must immediately explore and quickly ramp up financing from alternative investment sources. This paper explores the securitization of existing infrastructure assets by public sector banks in India as a means to (i) strengthen their capital position to meet Basel III requirements (ii) free up capital to help fund new credit growth opportunities and (iii) ultimately improve fund flow to the infrastructure sector by enhancing its access to institutional investors.