Government has taken measures to revitalise Public Private Partnerships (PPPs) in the infrastructure sector, but all stakeholders need to work together to make such projects successful, Parliament was informed today.
"While government has taken measures (to revitalise PPP projects) on its part, steps need to be taken by other parties," Minister of State for Finance Arjun Ram Meghwal said in a written reply to the Lok Sabha.
Steps have to be taken taken by all stakeholders, including public authorities, state and regulatory authorities, corporate sector, private developers and financial institutions, Meghwal added.
The minister noted that some sectors have seen developments which were not anticipated, as pointed out by the committee on revitalising PPP model in infrastructure sector, headed by Vijay Kelkar, in its report submitted to the government in November 2015.
"These included factors like over-leveraged balance sheets of the developers, global macroeconomic developments, land acquisition and lack of dispute resolution mechanism," he said.
Noting that since PPP contracts are long term and are sometimes subject to uncertainties, Meghwal said there is need for constant capacity building by each group of stakeholders.
Public Private Partnership (PPP) refers to a contract agreement between a government or statutory entity and a private sector company for executing various infrastructure projects.
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Replying to a separate query, Meghwal said the structure of the National Investment and Infrastructure Fund (NIIF) has been refined pursuant to discussions held with investors.
"The NIIF would have various sector-specific close ended schemes and each fund may issue various cases of units. Government along with other investors would subscribe to the units of various funds.
"The units, investment strategy and accounts of each fund shall be distinct from and independent of the other funds," the minister said.
Last month, the government appointed senior IFC official Sujoy Bose as CEO of NIIF.
The government set up NIIF to attract investment from both domestic and international sources for infrastructure development in commercially viable projects.
It has been incorporated as a company under the Companies Act, 2013, and duly authorised to act as an investment manager.
