Govt to encourage PPP model in urban infrastructure

Pitching for dismantling public sector monopoly over urban infrastructure as outlined in the 11th 5-Yr Plan, the Govt favoured creation of conducive conditions for private sector's investment in it.

Pitching for dismantling public sector monopoly over urban infrastructure as outlined in the 11th Five-Year Plan, the government on Wednesday favoured creation of conducive conditions for private sector's investment in it.

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"Since there is a huge requirement of funds for the infrastructure development in cities, we are encouraging PPP model under JNNURM scheme," said Urban Development Secretary M Ramachandran.

Referring to the strategy outlined in the 11th Plan, he said the emphasis is on strengthening urban-local governance, dismantling PSU monopoly over urban infrastructure and creating conditions for the private sector to invest in it.

India is on a high growth trajectory and requires huge investment in urban infrastructure, he said.

"We have taken many initiatives to encourage various players in the infrastructure sector with a view to enhancing competitiveness in service delivery for urban dwellers," Ramachandran said.

On the progress of JNNURM, he said 329 projects have been sanctioned by the Urban Development Ministry with an approved cost of Rs 30,604.80 crores till date.

"The government would make available about Rs 7000 crores in the current fiscal under JNNURM and we are encouraging states to avail itself of the funds for modernising the public transport service in cities," Ramachandran said.