National PPP Policy For Transparency, Better Results
Wednesday, 28 September 2011, 19:23 IST
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The government today came out with a draft National Public Private Partnership (PPP) policy with a view to improve transparency and promote infrastructure sector projects. In pursuance of government's commitment to improve the level and quality of economic and social infrastructure service, the Policy proposes to expand the scope of the PPP scheme. The development follows the announcement made by the Finance Minister Pranab Mukherjee in the Budget. He had said that the government would come up with a comprehensive policy which could be used by the Centre and the State Governments in further developing PPP projects in the country. The 26-page draft policy seeks to put in place the broad principles for pursuing a project on PPP basis. Besides, it will also provide a framework for identifying, structuring, awarding and managing PPP projects. It also seeks to address the issues concerning definition of various terms and also processes so that a clear and consistent position can be adopted by stake holders, including centre, states and private investors. The policy will also ensure that a value-for-money rationale is adopted with optimal risk allocation in project structuring with life cycle approach. At the same time, it will develop governance structures to facilitate competitiveness, fairness and transparency in procurement and attaining appropriate public oversight and monitoring of PPP projects. The government has asked stakeholders to give comments on the draft National PPP Policy by October 15. The move of the government is also in sync with Prime Minister Manmohan Singh's wish to bring more transparency in the PPP projects which are mainly undertaken to provide public service by private players. "It is necessary to demonstrate that the award, construction and operation of these (highways) projects is based on a fair and transparent approach which eliminates any suspicion of favouritisms or what might be described as crony capitalism," Singh had said earlier this month. The government is envisaging an investment of USD 1 trillion in infrastructure sector during the 12th Five-Year Plan (2012-17), up from USD 500 million in the current Plan.
Source: PTI
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