Centre looks at PPP mode for infrastructure growth

Hyderabad: The Union Government is looking at areas where public private partnership (PPP) mode can be replicated for the development of infrastructure. “There are other areas apart from the transport sector where the PPP model can be used and we are exploring these areas, like the water sector, among others,” Mr S. Jaipal Reddy, Union Minister for Urban Development, said.

The Minister said that land is a scare commodity, therefore there is no escape from vertical growth, and we have to be liberal in allotment of multi-storied buildings for which creating good infrastructure is necessary.

Since infrastructure projects require huge investments, recovery is also an important issue. We need to see that the well-off sections do not get the subsidies in the name of the poor, which often happens, Mr Reddy said.

He said that as per the current estimates, by the end of the Twelfth Plan period, around $1.5 trillion is required for development of various infrastructure sectors, out of which 30 per cent has to come from the private sector.

According to him, 330 projects have been sanctioned under the Jawaharlal Nehru National Urban Renewable Mission in 53 cities across 26 states in the country. The total cost of these projects is Rs 30,587 crore out of which Rs 3,540 crore was utilised in 2007-08.

Mr Reddy also said that since there is not enough fossil fuel, the Government is focussing heavily on developing the public transport system across the country. “We are trying to encourage metro rail projects in all major cities. Our experience in Delhi showed that we cannot depend only on one mode of public transport system and that is why we are looking at developing the Bus Rapid Transit System (BRTS),” he said.

So far, the BRTS has been sanctioned in 10 cities, including Pune, Nagpur, Bhopal, Indore and Ahmedabad.

According to the Chief Minister of Andhra Pradesh, Dr Y.S. Rajasekhara Reddy, if more money is spent on creating better infrastructure, it would become a triggering point for more investments to come in.

“The PPP mode has helped in sticking to time schedules. Need for more private participation in infrastructure is also very important for development,” he said.