In a bid to help states fund infrastructure projects, the government has kicked off a process of empanelling consultants who will prepare feasibility reports and help the government bid out projects to private players.
The government has sought expression of interest for empanelment of such consultants for a period of at least three years for developing projects on public private partnership (PPP) basis. It is looking for consultants who will help prepare projects relating to tourism, urban infrastructure (including solid waste management, townships, parking projects), road, power, water supply, urban transportation and industrial infrastructure.
The consultant will be expected to take his fees once the project is bid-out from the successful bidder as a ?success fee.? If the project does not get bid-out, the state government would then pay the consultant from its own pockets. Sources said the states would use the Rs 100 crore corpus, tentatively called the India
Infrastructure Project Development Fund, which was announced recently.
The fund is expected to be a revolving fund and will get replenished from successfully bid projects.
The move comes after a number of states have shown inability in getting private funds for infrastructure development. According to government estimates, the infrastructure sector requires investments to the tune of $475 billion during the 11 th Plan period, which cannot be met by the public sector alone.
The Centre has again asked states to increase investment in the sector by exploring a mix of public investment, PPPs and occasionally via exclusive private investments.
Along with lack of funds, the Centre has also been concerned about the lack of feasible projects to be routed through PPP and has been looking at various ways this can be done.