PPPs handy to overcome resource gaps: Reddy

New Delhi, Aug 20 (UNI) Urban Development Minister S Jaipal Reddy today said public private partnerships have become potential strategies to promote urban infrastructure investments and overcome the resource gaps.

''They have led to efficiency in service delivery and inclusive growth,'' he said, speaking at a national workshop on 'Capacity Building for Promoting Public Private Partnerships in Urban Infrastructure' here today.

Highlighting the immense pressure which infrastructure in urban India was facing, he said there are many gaps with respect to water supply, sanitation, waste management, public transport, housing and facilities for the urban poor.

While the Eleventh Plan estimates Rs 1,29,000 crores will be required to take care of water supply, solid waste management and sanitation, he said there will be a resource gap of nearly 89,237 crores which will still be needed to meet urban infrastructure needs.

He said given the present taxation structure, the urban local bodies will not be able to raise the money required for various projects. Hence, PPPs are the only option to raise resources and provide efficient management, the Minister said.

The Jawaharlal Nehru National Urban Renewal Mission (JNNURM), led by the Ministry of Urban Development, provides the framework and incentives for urban local governments to promote PPP. Yet, structuring and implementation of PPP projects in critical sectors such as urban transportation, solid waste management, water and sanitation etc., continue to be a challenge, he pointed out.

He said a robust legal framework delineating balanced sharing of risks should be in place so that the private company is not at the mercy of political fluctuations.

For the successful implementation of any PPP agreement involvement of local stakeholders and transparency in awarding of contracts are of paramount importance, he noted.

The two-day seminar is jointly organised by Administrative Staff College of India (ASCI) and India PPP Capacity Building Trust in order to respond to the emerging capacity building and knowledge support requirements of states and urban local governments. UNI MMG RR NS1925