PM lays down road map for PPP framework in infrastructure

New Delhi, Oct 7 (UNI) Saying that infrastructure needs an investment of 320 billion dollars in the Eleventh Plan period, Prime Minister Manmohan Singh today asked the private sector to step in a big way to meet this huge deficit and offered a new deal by way of a policy framework and regulatory mechanisms to facilitate this.

"In the coming weeks and months, we will be finalising the remaining elements of the policy, regulatory and institutional framework for PPPs (Public Private Partnership) in infrastructure.

In keeping with our philosophy of openness and interest in ensuring this framework reflects the wisdom of all stakeholders, we will continue to hold consultations on key issues as they emerge," Dr Manmomhan Singh said inaugurating the day-long mega conference on 'Bulding Infrastructure.' "Infrastructure development requires huge resources. The Planning Commission has estimated that investment in infrastructure-defined broadly to include road, rail, air, and water transport, electric power , telecommunications, water supply and irrigation-will need to be of the order of about Rs 14,50,000 crore or 320 billion dollars during the 11th Plan period. This is requirement of an immense magnitude," Dr Manmohan Singh said.

Others who spoke in the inaugural included Finance Minister P Chidambaram, Planning Commission Deputy Chairman Montek Singh Ahluwalia and Commerce and Industry Minister Kamal Nath.

Other Ministers who were seated on the dias included Minister for Shipping and Road Transport T R Baalu, Toursim Minister Ambika Soni and Power Minister Sushil Kumar Shinde.

Dr Singh, however, said attracting private capital through the PPP route or any other route is neither easy nor automatic. A key pre-requisite is required to lay down a policy framework that ensures a fair return for investors provided they attain reasonable levels of efficiency.

But the policy must also protect the interests of users, especially the poor. PPPs are useful only if they assure quality supply at reasonable cost, he said.

The Prime Minister said balancing the interest of all stake holders was difficult. However, this needs to be done, he said and drew out a roadmap in this regard.

"Tariffs and service quality need to be regulated and consumer access protected. Since a large part of investor risk stems from uncertainity about government actions, we must ensure clairty in the policy and regulatory framework that governs participation in any area. Sanctity of contracts must be observed, and dispute resolution mechansims need to be speedy and effective," he said.

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