Rs 94,615 cr rides on PPP projects

Rs 94,615 cr rides on PPP projects
Don’t See The Model As Panacea For Infrastructure Ills, Caution Experts
TIMES NEWS NETWORK

Bangalore: Three years. Eighty-six projects — planned on the public-private partnership (PPP) model — valued at Rs 94,615 crore. The figures are mind-boggling, as Karnataka takes the PPP route on its infrastructure roadmap. The focus, though, has to be on not going overboard, according to delegates at a seminar on PPP in infrastructure.
Organized by the Bangalore Chamber of Industry and Commerce (BCIC) and YES Bank. ‘Financing infrastructure through PPP’ had speakers warning against seeing PPP as the panacea for all infrastructure ills. The key is in blending the best from the public and private sectors in the PPP model, said A Ravindra, former chief secretary. Citing the PPP-driven Bengaluru International Airport (BIA), Ravindra said the private sector itself is now critical of its facilities.
However. he lauded PPP initiatives in developing minor airports outside Bangalore to ensure balanced development in the state. The focus for the PPP model should be on tapping potential in rural infrastructure.
According to Gaurav Gupta, special secretary, infrastructure development department, the challenge ahead for the PPP model is in tackling issues like increasing public aspirations, apprehensions over private sector monopolies, lack of policy-level information in the public domain, complicated agreements and issues of land acquisition.
Somak Ghosh, group president (corporate finance and development banking), YES Bank, warned against projecting PPP as the solution for all financing problems in infrastructure.
State plans big on PPP
A big chunk of Karnataka’s PPP projects are in the transport, civil aviation, urban/municipal and tourism/industry sectors. They include four airports in Shimoga, Gulbarga, Hassan and Bijapur, 11 airstrips, 22 helipads, three ports, road projects and modernization of bus stands.
The IDD is also conducting capacity-building workshops on PPP for government officials. In the long run, the department plans to develop a repository of information on PPP, including model concession agreements and model requests for proposal.