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PPP model for urban development projects: Govt

The Government today emphasised on the importance of Public-Private-Partnership (PPP) model for urban development, saying the approach is best suited for the infrastructure sector.



New Delhi: The Government today emphasised
on the importance of Public-Private-Partnership (PPP) model
for urban development, saying the approach is best suited for
the infrastructure sector.

"It (PPP) supplements scarce resources, creates a
more competitive environment and helps improve efficiencies
and reduce costs," Minister of State for Urban Development
Saugata Roy said.

Roy was speaking while addressing a conference on
Rejuvenating Urban Infrastructure: Challenges & Opportunities
for PPP, organised by the PHD Chamber here.

He said India has the second largest urban population in
the world and is likely to see significant growth in number of
people living in cities over the next two decades.

Roy said that ensuring quality urban services to this
large, growing population would be crucial to realising
India`s vision of urban development.

The minister said infrastructure development at this
scale would require huge resources and it was not feasible for
the government alone to fund the total required infrastructure
investment.

"It is imperative that we explore avenues for increasing
investment in infrastructure through a combination of public
investment, PPPs and exclusive private investment wherever
feasible," Roy added.

The minister, however, admitted that urban infrastructure
sector has witnessed least amount of progress regarding PPPs.
He said PPPs are useful only if they ensure quality supply at
reasonable cost stressing the need for the establishment of
independent regulatory bodies with an appeal mechanism.

Naveen Kumar, Secretary, Ministry of Urban Development,
said India Infrastructure Development Fund (IIDF) will be used
for promoting urban infrastructure in the country.

PTI

From Zee News

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