‘Viability gap funding needed to make PPP attractive’

To make Public Private Partnership (PPP) projects a more financially viable,Urban development minister Kamal Nath said that viability gap funding should be provided by government for all infrastructure projects. This proposal will now be tabled in the Cabinet for approval

Written by Express News Service | New Delhi | Published: September 18, 2012 2:57 am

To make Public Private Partnership (PPP) projects a more financially viable,Urban development minister Kamal Nath said that viability gap funding should be provided by government for all infrastructure projects. This proposal will now be tabled in the Cabinet for approval.

“Viability gap funding should be provided to make PPP an attractive option. This is being explored under Jawaharlal Nehru National Urban Renewal Mission,’’ said Nath.

Saying that urbanisation had happened by default and not design,the minister said that there was a huge gap between growth and infrastructure deficit and the time had come for PPP to help meet infrastructure needs.

“We need to get out of ‘all is free attitude’. PPP has to be linked with ability to pay. Governments need to take initiative in this regard,’’ said Nath.

On the monorail projects in Kerala and Delhi,the minister said,“We will support Kerala in their monorail project.’’

According to urban development ministry,maximum PPP projects which have been taken up under urban renewal mission,involve solid waste management projects. “Capacity building in urban local bodies is required and PPP will play an important role in this,’’ the minister said.

Speaking on this issue,urban development secretary Sudhir Krishna said that PPP should not equated with privatisation. “The government body should not feel that they have no accountability towards implementation and overseeing of the PPP project.”

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