CHENNAI: In a bid to attain the target of a $1 trillion economy, the state government is keen on inviting private investment in infrastructure development. The policy document which was unveiled by Chief Minister M K Stalin at the Global Investors Meet on Monday aims at creating a robust partnership environment for public-private projects where risks would be shared fairly, concerns of private investors accommodated, and capacity of government agencies enhanced in a planned manner.
The policy framework aims to inaugurate a new era of infrastructure development in the state. In the past decade, private investment has been meagre in the infrastructure sector. The government intends to address this by creating a robust investor-friendly framework that would enthuse private players to partner with the government through sustainable long-term contracts, the document said.
The government has brought in several modifications to the existing framework and procedures to facilitate public agencies and private developers. TNIDB has taken policy and institutional initiatives to promote PPPs, streamline project appraisal and expedite approvals. This policy would present the broad framework.
Tamil Nadu Infrastructure Development Board and the secretariat departments will have the prime responsibility to identify potential PPP projects in the state. TNIDB would create a project for implementation.
The projects may be as small as a community hall in an urban local body or as large as a power project worth thousands of crores. For projects costing less than Rs 10 crore, TNIDB approval is not required, the policy document said.
The government is investing more than Rs 50,000 crore annually for capital asset creation in the state. The investments have to be much more to reach the goal of $1 trillion by 2030. According to a Deloitte report, the Tamil Nadu government has to grow at an average of 16.5% which is way above the current rate of growth of 10% to achieve the milestone of a $1 trillion economy.