Public Private Partnership (PPP) projects in Andhra Pradesh will soon get a boost as the State government is working on earmarking a ₹2,000 crore for Viability Gap Funding (VGF) soon.
The plan for creation of a separate fund for ensuring viability is also in line with the vision of the Chief Minister N Chandrababu Naidu who is envisaging a new participatory model for development christened as P-4. The State government will launch the ‘P4 policy’ (Public-Private-People Partnership) for economic development and poverty alleviation on ensuing Ugadi, the Telugu new year on March 30.
“The VGF is being seen as a necessity by the government in the absence of infrastructure development in the last five years and will help in hastening the projects to ensure speedy economic growth in the State,’‘ a senior official told businessline.
When asked on the sectors which are likely to be given priority in the proposed VGF, the official said funds could be given on the basis of a `competitive mode’ to projects in all the departments in line with their importance to spur speedy growth in the State for wealth creation, job opportunities and expected positive spin-off effects.
According to Naidu, the new model will help bridge the economic gap by ensuring contribution from the top 10 per cent of the wealthiest individuals to uplift the bottom 20 per cent of society while increasing the flow of investments for sustainable development.
PROJECTS
As per the pre-poll promises of the NDA government, completion of the new capital project Amaravati and Polavaram is key to the performance of governament and PPP projects would play a key role in making Amaravati a complete city apart from the core government investment of over ₹50,000 crore.
Logistics, infrastructure, green energy, urban development beyond Amaravati in other regions of the State, development of urban clusters around the port are being seen as potential areas where VGF is being seen as a catalyst for speedy development in PPP model, the official said.
The upcoming mega projects including rollout of metro projects in Visakhapatnam and Vijayawada (connecting the new capital Amaravati) may get a positive response if VGF is provided, the official added.
To encourage investments in education including technical and pharma and life sciences, free power supply to educational institutes is also being planned.