Lukewarm response to PPP in urban infrastructure projects

Published: 24th August 2012 09:27 AM  |   Last Updated: 24th August 2012 09:27 AM   |  A+A-

While India looks to build up its much-needed infrastructure sector at an estimated cost of $1 trillion over the next five years, Minister of State for Urban Development Sugata Ray rued that urban development projects were not getting much of a response for public private partnership (PPP).

“Although PPP is happening in sectors like telecom, ports and roads, lot of other segments need greater attention,” Ray said.

India’s basic infrastructure is ranked at 86th in the Global Competitive Report 2010 by the World Economic Forum.

“So we have a long way to go. There is a potential for PPP to contribute more and help bridge the infrastructure gap in sectors like ports, roads  railways and power, Ray said while speaking at the 2nd regional conference on infrastructure management  organised by Confederation of Indian Industries and global realty consultant CB Richard Ellis.

“We are envisaging PPP in urban development but the response has not been encouraging except in solid waste management,” he said. The minister also cited the example of development of Delhi Metro and other big airport projects through PPP mode.

Ray pointed out that the huge skilled manpower that India has will hold India in good stead for development of the infrastructure sector.

Speaking at the conference, Delhi, Mumbai Industrial Corridor (DIMC) CEO Amitabh Kant said to house the increasing population in urban areas comprehensive planning of cities is required with the help of private players.

Citing example of the government’s ambitious $100 billion DIMC project, Kant said his corporation has involved best experts from all over the globe for the proposed smart cities in the country. “The proposed cities on the corridor will need to be developed in the PPP model,” he added.

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