IDFC adopts UK model for commercialisation of projects

Sitanshu Swain

Mumbai, Jan 1: Infrastructure Development Finance Corporation (IDFC) is adopting UK’s Private Financing Initiative model for undertaking commercialisation of projects which has enormous implications for India.

The model based on public-private partnerships to use resources effectively is based the thesis that ‘‘privatise’’ where possible, (and where commercialising possibilities exist and users of services are in a position to cover the full cost of its provision) and where this is not possible and where government retains its accountability to tax payers for service provision (such as education, health services, national savings and defence) use private financing and management of services with governments paying the final bill and thereby reaping huge efficiency gains.

‘‘There are many possibilities that can bridge the transition from where we are to where we wish to go,’’ according to the India Infrastructure report 2002. It is not the choice of means that poses a problem, as the clarity in determining the ends and setting-up objectives to be attained. This can be only be done through good governance mechanism.

The report says focussing on governance for commercialisation, prepared by IDFC, IIT (Ahmedabad), IIT (Kanpur) defining these partnerships in a manner which can be operationalised is the challenge of the decade in India.It was amply evident the world over that an omnipresent government attempting to do everything from maintaining law and order to providing goods and services to people is not feasible. The business of the government is to provide good governance at the least cost. This cost is the yardstick of success.