Centre examines PPP projects in east, NE

Kolkata, Aug 31 (UNI) Union Government today stressed on public-private-partnership (PPP) projects for infrastructure development in the country and examined the PPP projects undertaken by eastern and north eastern state governments.

"We have asked the state governments in the east and north eastern regions to form a PPP cell and appoint a nodal officer," Ashok Jha, secretary, department of economic affairs, Ministry of Finance, said.

Jha was addressing Bengal National Chamber of Commerce and Industry (BNCCI) members after a meeting with representatives of state governments from eastern and north eastern region.

The Centre would set up an internet site for the PPP projects.

"The site developed by IBEF will be a marketplace providing information about PPP projects undertaken by state governments," he said.

The meeting with state government representatives of the eastern and north eastern regions is the third after similar discussions with the state governments of southern and northern regions.

Jha said government would provide 20 per cent grant for unviable projects for infrastructure development and the grant may go up to 40 per cent in cases if required.

He said the India Infrastructure Finance Company has been formed to raise funds for financing the infrastructure development projects in the country.

The company had already financed around 750 million US dollars of infrastructure projects and is expected to raise five billion US dollars from the domestic and international markets, he said.

He said Indian Railways is also looking at feasibility of a freight corridor between north and west and north and east in the next 3-4 years.

The project is expected to give a boost to movement of goods in the country, he said.

To develop skilled manpower, government has asked the private sector to take up 100 Indsutrial Training Institutes (ITIs) and formulate a curriculum, he said.

He said India has the capability to sustain 9 per cent GDP growth target mentioned in the approach paper to Eleventh five year plan and efforts are on to remove the constraints in infrastructure and skilled manpower.

He said Indian companies are becoming global challengers with more acquisitions. "Within six months of the current year Indian companies had signed deals worth 4 billion US dollars as against 192 deals worth 4.5 billion in 2005," he said.

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