Prime Minister Manmohan Singh on Saturday said the government will revise bidding norms for awarding public-private partnership projects, to make the process transparent and expedite infrastructure development.
"We need to do more in future. We also need to improve the terms and conditions on which PPP projects are awarded to ensure that the process is transparent, bidding is competitive and public interest is adequately safeguarded," Singh said at the National Development Council (NDC) meeting.
He said the state of infrastructure in the country is good enough to achieve 9-10 per cent growth. "Because the resources required for bridging the infrastructure gap is huge, we adopted the strategy of supplementing public investment by encouraging public-private partnership (PPP) in infrastructure."
PPP refers to projects where the government and private partners enter into an agreement to execute projects on payment of user charges.
He said that investment in infrastructure increased after the introduction of the PPP model and even the states are now adopting the concept.
The Centre expects $ 500 billion investment in infrastructure in the 11th Plan period ending March 2012, and has doubled the target to over $ 1 trillion for the 12th Five-Year Plan.
To promote infra investment, the 2010-11 Budget proposed to exempt investment up to Rs 20,000 in long-term infra bonds from income tax. The amount is in addition to the existing overall tax exemption limit of Rs 1 lakh per annum for personal income taxpayers.