Question : PUBLIC PRIVATE PARTNERSHIP MODEL



(a) whether the Public Private Partnership (PPP) model has been assigned the responsibility for executing development projects in the country at present,

(b) if so, the details of projects being executed in the country on the above model as on date;

(c) whether the Government has made an assessment on the authenticity and efficiency of the system;

(d) if so, the details thereof and the corrective measures taken/proposed to be taken to improve the PPP Model in the country: and

(e) whether Planning Commission has brought out any consultation paper on PPP Mode healthcare, if so, the details thereof?

Answer given by the minister



MINISTER OF STATE (INDEPENDENT CHARGE) MINISTRY OF PLANNING, MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE FOR DEFENCE (RAO INDERJIT SINGH).

(a) The Twelfth Five Year Plan has recognised that adequate investment in the development of infrastructure is a prerequisite for higher growth. Accordingly, the Plan has projected an investment of Rs. 55,74,663 crore in infrastructure (defined to include electricity, renewable energy, roads & bridges, telecommunications, railways, irrigation including watershed, water supply & sanitation, ports including inland waterways, airports, oil & gas pipelines and storage) during the Plan period (2012-17). However, in view of scarcity of budgetary resources and lack of capacity within the government to implement such an ambitious programme, the strategy of the government relies significantly on promoting investment through a combination of public investment, private participation and various forms of public private partnership (PPP) in financially viable infrastructure projects.

(b) The status of PPP infrastructure projects in the country as on March 31, 2013 is shown below:

 
SI. Ministry / Sector Completed Projects Projects Under Implementation No. No. of Projects Projects Cost No. of Projects Projects Cost (Rs. crore) (Rs. crore) Central Sector 1 National Highways 75 31,404 161 1,55,438 2 Major Ports 29 12,964 29 8,561 3 Railways 4 17561 3 3,441 4 Airports 3 5,883 2 25.237 Total (Central Sector) 111 51,812 195 1,92,677 States Sector 1 Roads 166 22,445 187 65,038 2 Ports 28 33,162 18 28,411 3 Urban Infrastructure 179 7,568 144 47,496 4 Power 26 36,580 121 1,13,491 5 Railways 2 1,357 6 Airports 1 141 7 Other Sectors 183 9,861 126 20,371 Total (States/ 582 1,09,615 599 2,76,305 UTs Sector) Grand Total 693 1,61,427 794 4,68,982
(c) & (d) The Government has not made an assessment on the authenticity and efficiency of the system. However the key benefits of PPP Model in infrastructure projects are as follows:

# Encourage private investment in the infrastructure sector

# Reducing public direct spending

# Public budget could be used in other priority areas

# Introduce innovation and increased efficiency from the private sector

# Development of local capital market

# Right sizing of public institutions

# Better services to users and early delivery

(e) The Planning Commission is preparing a consultation paper on PPP in Healthcare.

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