'UPA eyes PPP model for infrastructure growth'

New Delhi, Feb 23: Showering praise on the UPA government for launching sustained efforts to promote Public Private Partnerships (PPPs) as an instrument for building world class infrastructure, President APJ Abdul Kalam today said the salutary results of such a policy were to be seen in the phenomenal changes in the railway, civil aviation, power, road and port sectors.

In his address to both Houses of Parliament, heralding the opening of the Budget Session, Dr Kalam, in particular, singled out the incredible ''turnaround'' of Indian Railways, saying it was once again on track because of market-driven pricing policy, rational utilisation of capacity and improved supply and demand management.

''Over the last 30 months, railway freight volumes have grown by 8-10 per cent and growth in passenger volumes has doubled.

Container business has been opened up to private businesses,'' Dr Kalam said.

Stressing the need to maintain this momentum, he said this would require modernisation and creation of additional infrastructure through promotion of the PPP model.

''There has been an encouraging response to the offer to allow prIvate container trains,'' he said.

With regard to the Dedicated Rail Freight Corridor, which received the Cabinet nod only yesterday, he said preliminary work on the project had begun.

''The project will provide the necessary infrastructure support for growth in container, coal and other mineral traffic. This project is proceeding on a fast track basis and a Special Purpose Vehicle called the Dedicated Freight Coridor Corporation of India Limited has been formed to implement the project.''

Dr Kalam said the infrastructure growth strategy, hinging on the PPP model, was imperative as it would bring in additional investments, adding to limited public sector resources. ''Further, private sector efficiency results in lower costs, quicker completion of projects and better delivery of services,'' he said, adding that substantial improvements could be seen in these sectors as a result of such initiatives.

With regard to the highways, he said the National Highways Development Programme (NHDP) had been greatly expanded with an investment target of Rs 227,000 crore.

''The Golden Quadrilateral (connecting four metros through a chain of state of the art highways) is nearing completion. Work for construction of the North-South and East-West Corridors has also been awarded,'' he pointed out.

Dr Kalam said the government had approved 4-laning of around 4000 km and 6-laning of 6500 km of national highways, including the Golden Quadrilateral.

The government, he said, was also implementing the Special Accelerated Road Development Programme for the North-East, keeping in view the urgent need to improve connectivity to the region.

Referring to the unprecedented growth in the civil aviation sector in recent years, the President said the government had initiated the modernisation of major airports and liberalisation of air services to cope with rapidly growing air traffic demand.

''Investment in airport development is on an upswing,'' he noted.

Dr Kalam also referred to the government's programme for massive capacity expansion of port infrastructure in order to keep pace with the country's share of global trade.

An Indian Maritime University is proposed to be set up in Chennai with regional campuses at Kolkata, Mumbai and Visakhapatnam. Stretches of Godavari and Mahanadi are also proposed to be declared as inland waterways.

UNI