)
Even as the Centre struggles to boost economic activity, a high-powered review meeting on public private partnership (PPP) projects on Friday decided to float a draft Bill on institutional mechanism to speedily resolve disputes in these.
According to officials, the Planning Commission, which convened the meeting, is also separately working on a note on the progress of PPP projects and remedies to solve the problems faced by these. The move to encourage private investment in infrastructure has come in the backdrop of tight fiscal conditions, officials added.
The meeting was attended by Planning Commission deputy chairman Montek Singh Ahluwalia, economic affairs secretary Arvind Mayaram and road transport and highways secretary Vijay Chhibber, along with representatives of the ministries of power, coal, civil aviation and urban development.
Officials said the Planning Commission will approach the Cabinet next month with a draft Bill for an institutional mechanism to speedily resolve issues related to public contracts and a separate note on the progress of PPP projects with remedies to solve problems faced by them.
“This was a first review meeting about PPP projects. We have been asked by the Prime Minister, the finance ministry and Planning Commission together to come back with an assessment of how the (PPP) programme is going, what problems have arisen and how we can address them,” Ahluwalia told reporters.
“We had a draft paper which was discussed with all secretaries. We will redo (revise) the paper and discuss with the finance ministry (before going to Cabinet),” he added.
The dispute resolution Bill and the PPP note are aimed at restarting the investment cycle and boosting investor confidence. The government envisages investments of $1 trillion in infrastructure projects in the five years ending March 2017, with half the amount coming from the private sector.
In May, amid rising concerns over delays and cost overruns in PPP projects, Prime Minister Manmohan Singh had asked the Planning Commission to prepare the draft Bill in consultation with all stakeholders and ministries.
