Rajasthan to bring in PPP policy, give bigger role to private sector infrastructure development

JAIPUR: Realising that its stretched financial condition might impact infrastructure projects and service delivery, the state government is looking to accord a bigger role to private players through a public-private partnership (PPP) policy.
Rajasthan government had prepared a draft of PPP policy in 2008 but it could not become a reality. Similarly, the Centre had circulated a draft in 2011but it did not move further.
Director general of HCMRIPA Sandeep Verma, who has been meeting various departments like PWD, drinking water, and medical and health to give a final shape to the draft policy before the end of October, said he was scanning through the drafts of PPP policies of the state government, Centre, Kelkar Committee recommendations, polices already announced by some states and the best global practices to have a best legislation in the state.
“Besides various state departments, I am also meeting officials of Niti Aayog and Union finance ministry to seek their feedback to prepare an effective, efficient and attractive draft of PPP policy,” Verma told TOI.
At an interactive session organized by CII-Rajasthan for giving inputs for the policy, the state’s industry drew attention to several grey areas that had taken the shine off PPP projects in the past. They said lop-sided risk allocation is one of the major deterrent in the success of PPPs.
“In case of penalties for lapses, it should be for both government and the private partner. The PPP policy should have scope for a separate authority to resolve difficulties faced by the private companies. Also, all data needs to be provided by government to the private partner as per the agreement and for any delay, the private partner should not be held responsible,” said Vishal Baid, chairman of CII-Rajasthan.
Baid said since infrastructure project contract continue for over 20-30 years, there is a risk of policy changes or change in economic conditions.
Baid said in such situations, there should be enough safeguard to protect the private partners.
Baid said there’s potential for PPPs in any sector. “PPP model is well-established for developing economic and social infrastructure and is now used in many parts of the world.”