The government needs to make an investment of $1.5 trillion by the end of the 12th Plan period for the development of infrastructure in the country. Of this, nearly 30% will have to come from private sector. So with a view to encourage public-private-partnership (PPP) model in infrastructure development, the Centre has instituted various measures including establishment of PPP cell, setting up of India Infrastructure Finance Company Ltd for extending long-term finance, creation of viability gap funding and an inter-ministerial group to determine the pre-qualification of bidders and PPP, said minister of urban development S Jaipal Reddy.
Delivering his inaugural address at the 6th edition of the ?Suminfra 2008? conference organised by the Confederation of the Indian Industry on Friday, he said all over the world investment for infrastructure development is made by the public sector. But in India, the PPP mode has been used in certain projects for infrastructure creation. In fact, foundation stone will be laid for the Hyderabad Metro Rail project soon, which will be on PPP mode.
?Since India does not have scope for personalised transport beyond a point, the government is focusing on public transportation. It is trying to encourage metro rail projects in cities like Bangalore, Chennai, Mumbai and Kolkata. The Delhi Metro Rail has been a huge success. But in New Delhi, we are also encouraging the bus rapid transport system, as we cannot depend on one mode of public transport system. The government is planning for bus rapid transport system in 10 other cities including Pune, Ahmedabad, Nagpur, Bhopal and Indore?, he said.
Talking about the Jawaharlal Nehru National Urban Renewal Mission, he said, the project has picked up very well. ?One of the components of JNNURM is urban development and under that we have already sanctioned 330 projects in 53 cities in 26 states. The cost of sanctioned projects put together works out to Rs 30,587 crore, that too in a matter of less than two years.?
Later speaking on the occasion, Andhra Pradesh chief minister YS Rajasekhara Reddy said the state has been concentrating on the development of infrastructure in a big way for the past few years.