Source: Business Standard

Asit Ranjan Mishra / New Delhi April 05, 2007

Can the risk-rating system be made optional in private-public partnership (PPP) projects? This is an issue the finance ministry is looking into.

At present, risk rating system is a mandatory for all PPP projects.

"First, we want to test how the risk-rating system runs," an official source said.

Even as the Planning Commission opposed the idea of risk rating by a third party, the committee of the credit rating agencies - ICRA, CRISIL, Fitch Ratings and CARE submitted a report recently, with the proposal to rank projects based on certain parameters on a 1 to 5 scale, 1 being the lowest and 5 the highest rank, both, at pre-bid and post-bid stages.

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Posted by pichu at April 5, 2007 3:37 PM