Govt to rework PPP model, to push for infrastructure projects

Kelkar committee constituted to relook at the public private participation projects

GN Bureau | May 27, 2015


#infrastructure   #investment   #ijay kelkar   #arun jaitley   #ppp   #PPP   #public private participation  

The PPP (the public private partnership) has become a favourite model for building infrastructure projects and after encountering numerous hiccups the government has constituted a committee to relook and revitalise the model.

The panel’s terms of reference include reviewing the experience of PPP policy, analysis of risks involved in the projects and current framework of sharing of such risks. This would mean that the panel would have go for modifications to contractual arrangements of PPP, examine international best practices as well as institutional context.

Many private players have been seeking changes in contracts to make them more flexible for renegotiation, and to ensure land is bought beforehand.

Finance Minister Arun Jaitley in his budget speech for 2015-16 had made an announcement regarding re-visiting the existing PPP mode to execute such projects.

The 10-member panel to be headed by former finance secretary Vijay Kelkar has been entrusted to suggest ways on improving capacity building for effective implementation of PPP projects. Among the members of the committee are C S Rajan, Chief Secretary, Rajasthan Government; S B Nayar, CMD, IIFCL; Shekhar Shah, Director General, NCAER; Pradeep Kumar, MD, CBG, SBI; Vikram Limaye, MD, IDFC; P S Behuria, former IRS and Sudipto Sarkar, Barrister-at-law, Kolkata.

Also it contains a representative, not below the rank of joint secretary, from the Road Ministry as its member, while Sharmila Chavaly, Joint Secretary, Department of Economic Affairs, Finance Ministry is the Member Secretary.

The panel is likely to consult various stake holders in private sector, government sector, legal experts, banking/financial institutions and academia while firming up recommendations. Infrastructure Development Finance Company (IDFC) will provide secretarial assistance to the Committee.

The Committee has been asked to submit its report within three months.

The government wants private companies to contribute half of a $1 trillion investment target over five years to 2017 to alleviate clogged-up roads and end electricity blackouts.

But various issues have caused delays and prompted banks to cut credit lines, leaving scores of projects in limbo and deterring new investment.

Narendra Modi came to power after cutting the number of approvals needed for road projects in Gujarat, making it easier for investors to build dozens of new highways. He also restructured utilities to make Gujarat India’s only state with almost universal 24 hour electricity.

Road-building is particularly prone to PPP weaknesses. At least 600 billion rupees ($10 billion) worth of projects is unfinished, primarily because of difficulty obtaining the required land to lay, lengthen or widen roads.

However, the infrastructure investment target for 2017 is going to be missed.

Comments

 

Other News

Hydro engineering college to come up in Himachal

 Prime Minister Narendra Modi has laid the foundation stone of hydro engineering college at Bilaspur in Himachal Pradesh. The college, being set up by National Thermal Power Corporation (NTPC) and NHPC, will provide B Tech courses in mechanical, electrical, civil and computer science discipl

BHEL commissions 3MW solar plant in Dadra & Nagar Haveli

 Bharat Heavy Electricals Limited has commissioned a three Mega Watt solar photo voltaic power plant in Dadra and Nagar Haveli.  BHEL executed this project on a turnkey basis for Dadra and Nagar Haveli power distribution corporation limited at Velugam.   It

Back to the drawing board: Kejriwal

Time to go back to the drawing board, said Delhi chief minister and Aam Aadmi Party leader Arvind Kejriwal on Saturday, days after his party failed to make its mark in the Delhi civic elections.   In a message, Kejriwal said that in the last 2 days, I spoke to many vo

Grasp the nettle by taxing rich farmers

  The tax net needs to be expanded and the rich farmers must pay up their taxes. This week saw quite a bit of going back and forth over this prickly issue after Niti Aayog member Bibek Debroy batted for taxing agricultural income.   Niti Aayog vice chairman A

Attention to NTDs, dream of an equal, accessible internet and the struggles of CIC

  A giant yellow inflatable schistosomiasis worm, with ‘Making Schistory’ printed on it, floated on Lake Geneva, marking the five years since the London Declaration on neglected tropical diseases (NTDs). Though in 2015 about 1.59 billion people received treatment for at least

BBNL, BSNL to provide broadband connectivity to 1.3 lakh rural post offices

In order to provide broadband connectivity of BharatNet to post offices in rural areas, Bharat Broadband Network Limited (BBNL), department of posts and Bharat Sanchar Nigam Limited (BSNL) have signed a tripartite agreement.   The agreement is the first tri-partite MoU which



Video

शहीदों के लिए आगे आये आईएएस अफसर

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter