The government has adopted checks and balances in the monitoring mechanism for public-private partnership (PPP) projects to tap leakges and corruption, a government official said on Wednesday.

“There is a two-way mechanism being set-up to examine for corrupt practices, if any, in the PPP projects,” Rakesh Srivastava, joint secretary, ministry of shipping, announced at a Ficci conference on PPP projects.

“The independent external monitors are placed whenever PPP projects are awarded with clearance from the anti-corruption watchdog – central vigilance commission (CVC) office,” said Srivastava.

He added that the CVC will also appoint a chief technical examiner to keep a close watch and carry inspection on the contracts and works undertaken.

However, the government is working on a comprehensive PPP policy on infrastructure which will encompass social sector, said R. Gopalan, secretary, department of economic affairs, ministry of finance. “A comprehensive policy framework for public private partnership (PPP) in the building of physical infrastructure and social sectors such as health and education is on the anvil which will lay down guidelines for the entry of private players and implementation of infrastructure projects,” Gopalan added.

The financial secretary also said that government is addressing the key regulatory and financing aspects which impact PPP projects. “We are conscious that these aspects may not have a ready made solution. Any solution would have to be cross cutting across sectors and encompass financial sector reforms, land reforms, legal reforms, etc.,” Gopalan said. The new policy is aimed at catering to second generation PPPs with focus on appropriate public oversight and monitoring of such projects.

The number of PPPs in infrastructure is bound to witness a huge rise from the present 700 projects in roads, airports, ports, metros and urban infrastructure. The government is also eying PPP projects in storage facilities, cold chains, education, health and skill development.

The finance ministry is expected to come with guidelines on infrastructure debt funds next month aiming to meet financial requirement of the sector. India needs a $1 trillion investment in infrastructure to meet its target during the 12th Plan (2012-17).