MANU/PIBU/1942/2015

Department/Board : Press Information Bureau

Date : 28.12.2015

Report of the Committee on Revisiting and Revitalising the PPP Model of Infrastructure Development Released

The Report of the Committee on Revisiting and Revitalising the PPP model of Infrastructure Development chaired by Dr. V. Kelkar has been issued and also uploaded on the Ministry of Finance's website (finmin.nic.in).

In the Union Budget 2015-16, the Finance Minister Shri Arun Jaitley had announced that the PPP mode of infrastructure development has to be revisited and revitalised. In pursuance of this announcement, a Committee on Revisiting & Revitalising the PPP model of Infrastructure Development was set-up which was chaired by Dr. Vijay Kelkar. The Report of the Committee submitted to the Government has been uploaded on the Ministry of Finance's website.

(http://finmin.nic.in/reports/ReportRevisitingRevitalising PPPModel.pdf).

The Executive Summary of the Report is as follows:

Highlights of the Report

1. Public Private Partnerships (PPPs) in infrastructure refer to the provision of a public asset and service by a private partner who has been conceded the right (the "Concession") for the purpose, for a specified period of time, on the basis of market determined revenue streams, that allow for commercial return on investment.

2. PPPs in infrastructure represent a valuable instrument to speed up infrastructure development in India. This speeding up is urgently required for India to grow rapidly and generate a demographic dividend for itself and also to tap into the large pool of pension and institutional funds from aging populations in the developed countries.

3. India offers today the world's largest market for PPPs. It has accumulated a wealth of experience in getting to this premiere position. As the PPP market in infrastructure matures in India, new challenges and opportunities have emerged and will continue to emerge. Periodic review of PPPs, as in the present Committee's remit, are a must to help address issues before they become endemic and to mainstream innovations and foster new ones that improve the successful delivery of PPP projects.

4. India's success in deploying PPPs as an important instrument for creating infrastructure in India will depend on a change in attitude and in the mind-set of all authorities dealing with PPPs, including public agencies partnering with the private sector, government departments supervising PPPs, and auditing and legislative institutions providing oversight of PP........