Cash-starved Maharashtra Government has found a new concept to build infrastructure without bothering about its empty coffers—rope in private sector.To attract private investment in key sectors, the government is now coming out with Maharashtra Infrastructure Development And Support Act (MIDAS) to do away with the ills that plague infrastructure projects—red-tapism, litigations, disputes between investors and government and investors’ concerns over returns on their investment.The provisions of the proposed law, whose draft was cleared by the cabinet on Friday, aim to do away with these problems. Infrastructure projects are prone to disputes and litigation between the government and private developers. The constitution of a body for dispute resolution with quasi-judicial status, would assist in ensuring speedy and fair resolution of disputes. The board will be of three members, headed by a retired HC judge and it will have powers of a civil court, the draft says.Under the proposed law, the government is planning to set up an Infrastructure Authority (IA), a single body for resolving issues relating to private sector participation and ensure speedy decision making, implementation of projects and coordination between various government department.The IA, to be headed by Chief Minister, will have the powers to issue various clearances if the concerned government department fails to do so in a specified period. The act provides for charging users levies for recovery of investment and earning a reasonable return on it. The tariff will be regulated either by the IA or a government appointed regulator. ‘‘So far we have regulator only in the energy sector, The government intends to constitute similar regulating bodies for each sector where private sector will recover users’ levies,’’ says industries secretary Vishwas Dhumal.Significantly, MIDAS will also protect the interests of the government, if CM Vilasrao Deshmukh is to be beleived. ‘‘The developer cannot leave the project mid-way after signing MoUs. There will be provisions to prevent this,’’ he says. Along with the new act, the government is also planning sectoral policies. The draft law will be discussed on November 11 at Maharashtra Infrastructure Summit—2002.
