PUBLIC-Private Partnership (PPP) initiatives for infrastructure projects could only succeed when various stakeholders agreed upon a risk sharing formula, Planning Commission member Dr Kirit S Parikh said.
“It is a proven fact that the public sector agencies have limited efficiencies for completing a large infrastructure project. This is where the private sector could bring in the crucial technology inputs and quality management expertise in a PPP framework to execute projects in a manner better than any public sector agency,” Parikh told a gathering of CEOs, academicians, senior government officials and eminent scientists at the two-day LMA Convention 2006 titled ‘Public Private Partnership- Issues & Strategies’ which began here on Friday.
“The state governments will also need to create an environment wherein the private sector’s profit-oriented objectives are satisfied to keep them interested in a PPP project”, he said.
“A PPP model should also work in an environment of transparency where the bidding process for a project does not leave any scope for undue favours being granted to a party by the public sector agencies to become partners in a project”, Parikh said.
The governments must also not become a prisoner of its own rules and regulations and adopt a flexible approach towards making PPP projects attractive for the private sector participation, he added.
Dr D V Kapur, director, Reliance Industries Ltd (RIL), in his address said that projects could succeed in any sector if the government took the initiative to sensitize the bureaucracy as well as lower level employees towards objectives which would make development possible in any State. State Agriculture Minister Ashok Bajpai said the private sector could be involved in reviving four agricultural institutes lying closed in UP.
“The private players could be asked to launch courses in Agri-business management and even start agri-clinics in these institutes which would provide a viable employment option for millions of students in the State”, he said.
The students who qualify from the Agricultural institutes could find suitable employment in the agri-retailing ventures of large private players such as Reliance Retail and ITC group in the State, Bajpai added.