Public-private partnership to augment urban infrastructure, says Jaipal Reddy

Public-private partnerships are the key to overcome the resource gaps in urban infrastructure says union minister for urban development S Jaipal Reddy.

Speaking at a national workshop on capacity building for promoting public-private partnerships in urban infrastructure in the capital today, he said that public-private partnerships have become potential strategies to promote urban infrastructure investments, which lead to efficiency in service delivery and inclusive growth.

Highlighting the immense pressure which the Indian urban infrastructure is facing, he said there are many gaps with respect to water supply, sanitation, waste management, public transport, housing and facilities for urban poor.

He said that while the 11th Plan estimates of Rs.129,000 crore will be required to take care of water supply, solid waste management and sanitation, a resource gap of nearly 89,237 crores will still be needed to meet urban infrastructure needs.

However, as the the present taxation structure, would not allow urban local bodies to raise the money required for the various infrastructure projects., public-private partnerships were the only option for raising resources and providing efficient management, the Paswan said.

The Jawaharlal Nehru National Urban Renewal Mission provides the framework and incentives for urban local governments to promote PPP, though structuring and implementation of PPP projects in critical sectors such as urban transportation, solid waste management, water and sanitation, etc., continue to be a challenge.

He said a robust legal framework delineating balanced sharing of risks should be in place so that the private company is not at the mercy of political fluctuations. For the successful implementation of any PPP agreement involvement of local stakeholders and transparency in awarding of contracts are of paramount importance, he noted.

The two-day seminar has been jointly organised by yhe Administrative Staff College of India and the India PPP Capacity Building Trust in order to respond to the emerging capacity building and knowledge support requirements of states and urban local governments.

Several mayors, commissioners and senior government officers are participating in this conference.