This refers to “Government mulling a ‘golden share’ in PPP projects”, January 21. It is stated that this will ensure the government a say in all major infrastructure projects. However, in itself it will not bring the desired results. What is important is that the right to have a say is exercised in actual management.
The myth that independent directors could safeguard investor and public interest has been busted, for example, in the recent Satyam episode. Beyond the golden share and independent directors, it is the vigilance of the civil servants concerned — from choosing alternative proposals for the minister’s decision, conclusion of the agreements and overseeing the progress — which matters the most. Therefore, it is their vigilance which will ensure that the private sector partner does not take the government for a ride using the Public Private Partnership (PPP) model. This is very important for our nation because mammoth amounts are being earmarked in our plans on infrastructure development and bulk of them are under the PPP mode. Imagine the havoc that wrongly-conceived projects and unnoticed leakages can inflict on the nation. It would be equivalent to several Satyams in each case!
In these circumstances, the very thought of the government realising that it should have a greater say in such projects and the earlier decision of the CAG to widen its ambit to include audit of PPP projects are welcome developments. But, for them to achieve maximum benefit, such rights must not remain on paper but be exercised, and the audit reports should not be unduly delayed.
Equally important is the fearless and critical media, especially the financial press. Frankly what we see today is merely handout journalism covering infrastructure projects. Nowhere do we find critical examination of projects in all their aspects.
S Subramanyan, Mumbai
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