PPP a success in channelising pvt investment in infra: Govt
The Public-Private Partnership (PPP) has been a success in channelising private investment in infrastructure, though public sector will continue to play a dominant role in building infrastructure, government said today.business Updated: Aug 23, 2012 19:06 IST
The Public-Private Partnership (PPP) has been a success in channelising private investment in infrastructure, though public sector will continue to play a dominant role in building infrastructure, government said on Thursday.
"The PPP has been quite successful in India in channelising private investment in infrastructure sector," the minister of state for planning Ashwani Kumar said in a written reply to Rajya Sabha.
"During the 11th Plan the private investment in infrastructure is anticipated at 37% of the total investment against 22% achieved in the 10th Plan," he added.
He, however, said: "The public sector will continue to play a dominant role in building infrastructure."
He said the government is increasingly using PPP mainly in infrastructure projects.
Kumar said the total resources to meet the infrastructure deficit exceed capacity of the public sector. So it is necessary to attract private investment through appropriate forms of PPP to meet the overall investment requirement, he added.
"In sectors such as highways, airports, ports, railways and urban transit systems, PPPs are increasingly becoming the preferred mode of project implementation," Kumar said.
In some sectors such as irrigation and water resources management, construction of rural roads, capital dredging at major ports, as well as in certain economically or situationally disadvantaged regions, the bulk of the investment in infrastructure would have to come from the public sector, he added.
Last week, the government had informed the House that it was too early to state that the PPP model has been unsuccessful in implementation of metro rail projects.
"The PPP model has been used in development of metro (rail) projects in the world on a very limited scale. As a result there is no evidence of their being unsuccessful...it is too early to judge their (PPP metro projects') success," Kumar had said last week.
Meanwhile, it is to be noted that services of the Delhi Airport Express, which was implemented under the PPP model, has been suspended for few months now citing some technical reasons.