Minister calls for PPP in urban infrastructure

Hyderabad, Aug 20 (UNI) Union Urban Development Minister S Jaipal Reddy today said the Centre was encouraging Public Private Participation (PPP) in a big way to create urban infrastructure to meet future demands.

Inaugurating the two-day national workshop on 'Capacity building for promoting PPP in urban infrastructure,' organised by the Administrative Staff College of India and India PPP Capacity Building Trust, he said urban infrastructure was very inadequate and it was necessary to promote PPP.

He said urbanisation in India was far slower compared to other countries. However, with 30 per cent urbanisation in the country, India was the second largest economy in the world.

The Minister said there was a need to invest more to create urban infrastructure and as per the estimates of XI Five Year Plan, it would require Rs 1.29 lakh crore to create infrastructure.

Though the Centre had earmarked budgetary allocation, there was a deficit of Rs 89,000 crore in this sector.

He said in the next five years, the country would require Rs 1.32 lakh crore for urban transportation and after Budgetary allocation, there was a deficit of Rs 87,000 crore, taking the total deficit to Rs 1.76 lakh crore.

Stating it was very difficult for the government to raise funds, he said PPP mode was very essential to tap the private investments.

Mr Reddy said the Centre launched Jawaharlal Nehru National Urban Renewal Mission and sanctioned 41 projects, including solid waste management, urban water supply, road projects, flyovers and metro rails, on PPP with total investments of Rs 2,622 crore.

The Centre was encouraging PPP mode on metro rail and Bus Rapid Transport System (BRTS) in big cities which would create assets.

The government had already launched BRTS in ten big cities in the country.

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