FM gives PPP in infrastructure a huge push
Presenting the Budget 2014-15 on Thursday, Union Finance Minister Arun Jaitley announced a number of steps which will fast-track infrastructure projects being developed via public-private partnership (PPP) process.
Giving infrastructure in PPP a notable push in the Budget, Jaitley drew attention to the fact that PPP has effectively delivered iconic infrastructure – including highways, ports and airports – in India; and asserted that the steady focus on PPP has been maintained in this year’s Budget.
With regard to the NDA government’s proposed push to PPP in infrastructure, Jaitley said during his budget speech that support to mainstreaming PPPs will be provided by setting up an institution – dubbed 3P India – with an allocated amount of Rs. 500 crore.
To highlight the fact that the government has attempts underway to focus on the PPP approach for speeding infrastructure growth, Jaitley talked about a number of sectors like real estate, urban transportation, urban renewal, and gas pipelines.
However, while asserting that infrastructure projects delivered through PPPs are regarded as models for development across the world, Jaitley also sounded a note of caution with regard to “weaknesses of PPP framework.” He said these weaknesses include “the rigidities in contractual arrangements, the need to develop more nuanced and sophisticated models of contracting and develop quick dispute redressal mechanism.”
Source- The Hindu
Budget 2014, Budget 2014 Survey, finance budget 2014-15, Infrastructure, infrastructure & PPP, PPP model, PPP projects, Public private partnership (PPP)
