Centre plans to increase share in PPP projects

 Despite a question mark on the future of public private partnership (PPP) after Delhi-Airport Metro line have got into troubles, the Centre is still aggressive in building infrastructures in association with private partners.

The Union Urban Development Minister Kamal Nath on Tuesday said in the second phase of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the Ministry will give thrust to PPP projects.

Currently the PPP projects under JNNURM are being undertaken only in drinking water, water supply and solid waste management. The minister said it will be extended other urban infrastructure.

Addressing a seminar, the minister said in the second phase of the JNNURM, the Centre will extend financial assistance up to 20 per cent of the total project to the private partner in the form of viability gap funding. The JNNURM which was launched in 2005 by the UPA government to improve infrastructures in urban areas, had faced lot of criticism as many states have failed to implement the scheme properly due to inadequate capacity of municipalities, haphazard approach to taking up projects and failure to undertake crucial reforms.

The Centre earlier said proposed JNNURM II would be for 10 years. It would be pegged at Rs 1.5 lakh crore and launched after the Lok Sabha elections.

In the current 12th five year plan (2012 to 2017), the Centre wants 25 per cent of the total infrastructure projects taken up in the PPP mode only. Many feel that the stand-off between Reliance Infrastructure and the Delhi Metro Rail Corporation over the Airport Express Line could signal the end of PPP in India.
DH News Service