PPP model for infra development raise eyebrows in Kashmir
BILAL HUSSAIN
The public-private-partnership (PPP) as a model for the infrastructure development in Jammu and Kashmir, which would be taken by the private players with the state government has raised many eyebrows over the successful implementation of the projects under the model here.
The PPP model —long-term contractual partnership between the public and private sector agencies, specifically targeted towards financing, designing, implementing and operating infrastructure facilities and services in the state— is intended to achieve the twin objectives of high growth and equity on a sustainable basis.
Most of the states where the PPP model has done well have in-place infrastructure policy, which is not the case with J&K, economists who wished not to be named here said. “The primary objective of the infrastructure policy is to provide a fair and transparent policy framework for the facilitation of the process of economic growth and encouragement of PPP in the infrastructure sector in the state.”
The apex business chamber of the valley— Kashmir Chamber of Commerce and Industry’s (KCCI), president KCCI Nazir Ahmad Dar told Kashmir Times that the policy formulation for the infrastructure development should be the priority, which would guide the administration in a systematic way. “The need of the hour is to have the policy. We should not try to catch hold of everything and we will reach nowhere by this. Rather, we should priorities the things,” Nazir added.
Economists here believe that the need to foster such arrangements is supported by a clear understanding of the public sectors inability to provide public goods entirely on their own, in an efficient, effective and equitable manner because of lack of resources and management issues.
However, on a caution note economists told that there are complex issues in the arrangements that bring together varied players with different and sometimes conflicting interests and objectives working within different governance structures, which is a measure drawback in the model.
“PPP projects have seen mixed success in south India. Success stories include Hyderabad, Bangalore Airport and NHAI projects. The BMIC (Bangalore-Mysore Infrastructure corridor) experience, however, hasn't been successful,” quoting a report he said. The state should learn from these experiences and accordingly devise the policy to make PPP a success in the state, he said.
The valley Industrialist chamber, Federation Chamber of Industries Kashmir’s president Shakeel Qalander told Kashmir Times that the PPP model is one of the modes of doing the infrastructure work, ‘it is a welcome step.’ Some equity would be given by the government and rest would be contributed by the private sector, he said.
In other states like Rajasthan, have well developed roads and most of these roads are developed on the PPP basis. The private players collect toll fee after almost tens of kilometres, which they use for the road maintenance. “Public wouldn’t mind paying extra bucks to get quality infrastructure,” he believes.
The state should develop infrastructure by replicating and tailoring the successful models in other states of India. “We need to reproduce the model in rest of the projects in the state and get quality infrastructure. Involvement of private sector in the road development is the need of the hour.”
To mention, the state government has recently decided to explore PPP possibilities for execution of Rs 400 crore tunnel between Vailoo and Singhpora to provide all weather connectivity between the district of Kishtwar in Jammu region with the valley. The project report for its implementation in PPP mode has been prepared.
Another project to be developed on the PPP mode is four laning and up-gradation of the Highway from Lakhanpur to Srinagar is also progressing with good pace. The entire length has been divided into six segments. All these segments of the highway between Nagrota and Qazigund have been approved by the New Delhi for execution under PPP mode at a cost of Rs 9,700 crore.
While, the government is also encouraging establishment of backyard poultry units for which the department is gearing-up its production for supply of low tech poultry birds from the departmental hatcheries to the BPL families. The Department is working on a PPP initiative for developing hi-tech parent stock.
The state is mulling project of parking sites that need to be developed in both the cities, Jammu and Srinagar, and more sites have been planned for execution in government sector as well as in the PPP mode.
The recent award of the of Rattle hydro project on river Chinab to the GVK Power and Infrastructure Limited (GVKPIL) for developing 690 MW Hydro Electric project was awarded on build, own operate and transfer (BOOT) —Financing arrangement in which a developer designs and builds a complete project or facility (such as an airport, power plant, seaport) at little or no cost to the government or a joint venture partner, owns and operates the facility as a business for a specified period (usually 10 to 30 years) after which transfers it to the government or partner at a previously agreed-upon or market-price— basis is also a step towards PPP initiative.
No comments:
Post a Comment