Wednesday, December 23, 2009

It’s a big blow to PPP model, fume captains of industry

It’s a big blow to PPP model, fume captains of industry
Over Rs 50k-Cr Projects In The Works In State

Bangalore: The state government has landed itself in a spot, as the Joint House Committee report on the Bengaluru International Airport has come in for severe criticism from industry captains. In fact, they believe the report questions the very premise of the public-private partnership model on which the airport project was built.
The Rs 2,500-crore BIA is the first and largest PPP project to have come up in the state. Over Rs 50,000 crore is riding on the back of several PPP projects in road and infrastructure projects in the state. Apart from this, the state government is talking of PPP projects in
biotechnology, IT, textile and agroprocessing, etc.
“How can the state government talk about PPP when this is how they treat their private partners? The government is sending the wrong signal to industry on the future of PPP,” said Kiran Mazumdar-Shaw, CMD, Biocon and chairperson of the state’s Vision Group on Biotechnology.
“This report will surely create a temporary feel-bad factor in industry. As an industry body, we’ll definitely take up this matter with the government departments concerned in the right spirit,” said T Parabrahman, chairman, CII Karnataka chapter.
K R Girish, president, Bangalore Chamber of Industry and Commerce, said, “This report could also damage the state’s prospects for organizing the Global Investors’ Meet in June 2010. Such reports will undoubtedly make things very difficult for the government to invite foreign investment and private equity participation in various projects in the pipeline.’’
Harish Bijoor, domain expert, says the Hyderabad airport built with private participation gives one a feel of being in a truly international airport. So, it’s not that there is something wrong with private participation.
“In fact, the report points fingers at everybody. What is the use of looking at things so regressively? None of these bureaucratic analyses are going to help the public in general. We should learn to indulge in forward-looking growth rather than backward-looking criticism,’’ said Bijoor.
Karnataka is already feeling the heat from neighbouring states like Tamil Nadu and Andhra Pradesh, which are attracting mega investments. In fact, from 2000 to 2007, Karnataka was ranked third in attracting foreign investments, but it dropped to fifth position in 2008.
A recent report on the state’s investment scenario brought out by BCIC and auditing firm KPMG finds the state got a thumbs-down from industry captains in economic and social infrastructure as well as in enabling regulations to make the economic environment more investor-friendly.
BCIC is of the view that publicly condemning industry stalwarts, bureaucrats and the industry in general is not in good taste. K R Girish | PRESIDENT, BCIC

This report on BIAL is more subjective. What saddens me more is the way in which the report treats people like Narayana Murthy. The report is simply outdated.
— Kiran Mazumdar-Shaw | CMD,

It is absolutely incorrect and ridiculous to indict NRN. We should be grateful to him for all that he has done.
— Capt Gopinath |

We are yet to receive the report of the Joint Legislative Committee that was tabled in the legislative assembly on Monday afternoon. BIAL’s management has been in constant dialogue with the Joint Legislative Committee since the time of its inception. BIAL has always been forthcoming and transparent in its interactions and information sharing with the committee. BIAL will certainly review the report and implement its recommendations to the extent possible. BIAL is further committed to the next expansion of the airport in line with the traffic growth.
— Bangalore International Airport Ltd


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