The Hindu Business Line : ‘Tap private funds for public projects’

Hyderabad, Dec. 19 Private resources should be mobilised to fund major public projects to ensure inclusive growth especially in backward states, according to the Union Minister of State for Commerce, Mr Jairam Ramesh.

Delivering the Foundation Day lecture on ‘Regional Growth in India: Disparities or Despairties’ at the National Institute of Rural Development (NIRD) here on Tuesday, Mr Ramesh said the Public Private Participation (PPP) model also meant private funds for public projects.

“To my mind, PPP means private funds for public projects and not public funds for private projects as many private sector companies seem to think,” he said.

Stating that there was a need to bring down intra-State disparities to achieve inclusive growth, the Minister said these were too apparent “as any observer of relatively better-off States such as Maharashtra, Gujarat, Andhra Pradesh and Karnataka will testify – the coefficient variation for the 34 districts of Maharashtra for the human development index, is, in fact the highest in the country,” he added.

The southern and western States have a higher share of the country’s GDP than their share of national population reflecting their economic performance.

In the North and East, states such as Madhya Pradesh, Uttar Pradesh, Bihar, Assam and Orissa have considerably lower share of GDP than their share in national population, Mr Ramesh said.

On the public expenditure front, he said there was a disconnect between the investment needs and plan expenditure in some poorer states.

“We need new models for the Government. My own experience is that our procedures in the Union Government are preventing faster expansion of public infrastructure where its most needed,” he pointed out.

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