Presentation1 Project

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Theme

Identifying factors determining

riskperception of the investorsin UWS

Research Guide: Prof Sanjeev Chandorkar

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Conceptualisation

y Due to rapid urbanisation and population growth there is ahuge need of urban infrastructure.

y Urban water sector is mostly lagging in infrastructure asmost of the ULBs are debt ridden.

y Water was treated as a social goods and hence it was the

duty of the government to provide water to its citizen.y But government dont have sufficient funds.y Huge debate all aroundy Hence government determined to tap private sector

investment.y

It brought many changes and risk sharing strategies toattract the private sector investmenty A paradigm shift from social goods to social and

economic goods characteristics

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Conceptualisation

y Still Government fails to attracts private sectorinvestment in UWS in spite of bringing many policychanges

y Hence it is apt to understand the risk perception of the

investors who are active (other thancentral/state/ULBs, Bilateral and Multilateralagencies) and the prospective investors

y Investors include Bank, Parastatal Agencies, NBFCs,

Mutual Funds Providers, Private sector infrastructurecompanies

yArea: Mumbai-Headquarter of many investors

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Conceptualisationy Focused on Statutes, Sources of Funds and Ownership

y Statutes:y Various acts which govern their investment decisions, obligations etc

y Sources of Funds: (eg:-)y Wealth created by Entrepreneurial Activity indicates: Investors

often have strong sense of control over the risks that they assume.They can be very reluctant to cede ( give up ) control to a third partyor to accept investment volatility over which they have no influence.

y Wealth acquired through inheritance or accumulated over longperiods of secure employment may indicate: Those investors haveless experience in risk taking or less willingness to take risk

y Ownership:y Investor who have high percentage of share have the highest share of

decision making ability

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Objectives

y To compare different groups of existing/likely investorsin UWS based on select group of characteristics

y To compare the investors within the same groups(Bank, Parastatal Agencies, NBFCs, Mutual FundsProviders, Private sector infrastructure companies)

y To collate risk perceptions of different investors inUWS

y To analyse the risk perceptions of the investors andexplore their relationships with the above mentioned

characteristicsy To prepare a report that will help investors, academics

and researchers in understanding investment risks inUWS

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Research QuestionsyWhy there are less private sector investment in UWS?

yWhat are the risks in investing in UWS as perceived bythe investors?

yWhich are the organisations active in investing inUWS?

yWhat are the changes to be done to attract the privatesector investors?

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Current status

Group Literature review Interview AnnualReport

collectedLiterature

Identified

Literature

Reviewed

Gotappointment

Got appointmentbut date is not

fixed

Bank (4) Identified done 1 2 Yes

Parastatal

Agency (2)

Identified done no

NBFC (4) Identified done 1 2 Yes

Developmental institution

(2)

Identified done 1 Yes

Mutual funds Identified done 1 2 noPromoter (2) Identified Not yet 1

InvestmentRisks

Identified done NA NA

Risk

perception

Identified done NA NA

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Future plany

Collect the remaining annual reports (balance sheet)y Interview the remaining investors

yAnalyse the data

y Rough draft

y Final draft

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How self study, project and policy

assignment are connected

Investment riskin urban water

system

Identifying factorsdetermining riskperception of theinvestors in UWS

Investment Potential ofUrban Water Industryfor the Private Sector:Compilation of Views ofCapital Market

Facilitators (CMFs):

Self Study Project Policy Assignment

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List of investorsParastatal Bank NBFC Mutual

fundPromoters Developm

entalinstitutions

MJP Public

sector

IDFC IDFC MF JUSCO LIC

MUINFRA IDBI IL&FS Yet to findmore

JindalWater

HUDCO

SBI L&T Infra Yet to findmore

Privatesector

IIFCL

ICICI Bank

YES Bank