The Hindu Business Line : ‘India Inc must help strengthen public-private partnership model’

Bangalore, July 6 The Union Minister for Urban Development, Mr S. Jaipal Reddy, today sought India Inc’s contribution of managerial skill and financial capability to strengthen the public private partnership (PPP) model for rapid implementation of infrastructure projects.

Stating that the Jawaharlal Nehru National Urban Renewal Mission has raised the hope of tackling the infrastructure projects through this model, Mr Reddy urged the CII to suggest to the Government a sustainable business model for making PPP a viable and transparent vehicle.

He was speaking at the CII’s ‘Suminfra’ summit on ‘Sustainbale PPPs in Infrastructure.’

“Transparency, stability and sustainability are the three key factors that determine the success of PPP projects in infrastructure development.”

He added that the Centre will give special attention to implement the infrastructure development projects of Karnataka, especially those in Bangalore.

Mr Reddy said that so far, over 63 cities have submitted their plan for city development for the next 20 years.

The plans are being reviewed by independent technical agencies for viability and sustainability.

While sanctioning financial assistance to the State Governments, the Ministry will give priority to drinking water, stormwater drainage and solid waste management projects.

Over 77 per cent of funds allotted by the Ministry had gone to the implementation of these projects in the past four years.

The Andhra Pradesh Minister for Infrastructure, Mr M. Venkata Ramana Rao, said that his Government’s proactive role in promoting PPP model had bore rich dividends.

The State expects a few crucial projects like the 162-km Greater Hyderabad Growth Corridor (GHGC) and the greenfield deep-draft multipurpose port at Gangavaram will attract more investments.

Mr H.D. Kumaraswamy, Chief Minister of Karnataka, said that the State’s attention should shift towards other parts of Karnataka as Bangalore with its overexposure is saturated.

He added that the critical need was to come up with solutions that are sustainable and enough importance is given to asset maintenance and efficient service delivery of public services in the city.

Mr Kumaraswamy also said the focus should now be on opportunities in other parts of Karnataka, particularly the coastal region, which with 30 per cent of the overall investment lacked rail connectivity with the hinterland.

Mr N. Kumar, Past President of CII & Vice-Chairman of the Sanmar Group, said that if adequate investment did not flow into the infrastructure sector, it could reduce the GDP growth by over two per cent.

Mr P.K. Mohapatra, Chairman, CII (Southern Region) and President & CEO (Technology Business), RPG Enterprises, said that infrastructure development had a key role to play in both economic growth and poverty reduction of millions.

Mr J.P. Nayak, Chairman of Suminfra 2007 and President (Operations), L&T, said that though the task of infrastructure development in India was huge, the success in this sector was critical as it determines how India fares in terms of overall growth and poverty reduction.

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