Four credit rating agencies in the country have come together to device a grading system for public-private partnership infrastructure projects report CNBC-TV18.

For around a year now, the finance ministry has gone into over drive on PPP projects, launching a website and conducting workshops to attract better private interest for infrastructure projects. The risk grading system for such projects is one such initiative. Projects will be graded on a scale of one to five, the riskiest getting a score of five.

This is also a test of preparedness for project sponsors that are NHAI, municipalities and the state and central governments. By better structuring the projects, they will be able to improve the quality of bids. For instance, against the viability gap funding of up to 40%, that the government offers to make projects profitable, the NHAI has offered much less. But with a grading system it might have been able to secure better terms.

"15 % is the viability gap funding. If risks were graded, it can come down to  12 %" adds Mayaram Jt Secy, Finance Ministry

The finance ministry intends to persuade state governments to go in for risk grading, which is voluntary, not mandatory. It says it good a good response when a presentation was made in Mumbai to financial instititutions, fund managers and regulators.