Study urges new discount rates for infrastructure appraisal
In short
A study on public investment appraisal has recommended a 9.23% social discount rate for infrastructure projects with a 30-year horizon. It also suggested 6.2% for projects with 30-50 year horizons.
This matters for project planning and investment checks, but the reporting does not say whether the government will adopt these rates. That decision is still unknown.
What the reporting says
A study titled ‘Reassessment of National Parameters for Appraisal of Public Investment Programmes/Projects in India’ has recommended revising the social discount rate upward to 9.23% for infrastructure projects with a 30-year horizon, while also suggesting 6.2% for 30-50 year projects. The publisher summary says the proposal is part of a broader reassessment of national appraisal parameters. The reporting does not say whether any government body has accepted the recommendation.
Why it matters
The reported event is a study on national appraisal parameters for public investment projects in India. It recommends a 9.23% social discount rate for infrastructure projects with a 30-year horizon and 6.2% for 30-50 year horizons. The reporting does not say who commissioned the study, whether any policy change is planned, or how it would affect specific projects.