Union ministry writes to state to encourage local bodies work on Public-Private Partnership model
The Gujarat government, which eulogises its Public-Private Partnership (PPP) ability, does not have a single of its municipal corporations or urban local bodies to have proposed a PPP project from their city for Urban Infrastructure Governance (UIG).
Also, majority of the 21 projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) seem to be lagging in meeting their mid-term completion deadline of December 2008, while its overall progress has been mixed.
Recently, the Gujarat Urban Development Mission (GUDM) additional CEO, Mamta Verma, had sent missives to the municipal commissioners.
Mamta has sought an action-taken report on establishing Project Implementation Unit (PIU), use of Community Participation Fund, and preparing and submitting DPR for urban renewal projects as per JNNURM guidelines and developing PPP projects.
When contacted to know the number of PPP projects proposed or submitted by the civic bodies and ULBs, the authorities tried to pass the buck.
GUDM officials say it falls under Director of Municipalities, while the latter calls it a job of the Gujarat Municipality Finance Board, and that they are just the funding caretakers.
While Verma could not be contacted, the deputy CEO said, “I don't have much idea about PPP. The technical department might be able to answer the query.”
However, sources in the GUDM said that not a single proposal has come from the state as yet. Interestingly, they said that there is hardly any other state in the country that has such proposals.
Private investors are concerned about the rate of returns. So, they are reluctant to invest in the projects that have government funds involved, they added.
Earlier, Union Ministry of Urban Development secretary, M Ramchandran, had written to the state chief secretary on the completion of four years of the JNNURM implementation.
His letter said that the major constraint here is the large gap between demand and availability of resources in the process of urbanisation.
The PPP model could be helpful in filing this gap, and it is therefore important that the state government and ULBs take up more of viable projects, which can attract private investment, he stated.
The letter further said that only the projects, which cannot attract private investment, should be proposed under the JNNURM. The secretary also mentioned that nine projects could utilise only 40 per cent of its total project cost.
Courtesy : www.expressindia.com
The Gujarat government, which eulogises its Public-Private Partnership (PPP) ability, does not have a single of its municipal corporations or urban local bodies to have proposed a PPP project from their city for Urban Infrastructure Governance (UIG).
Also, majority of the 21 projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) seem to be lagging in meeting their mid-term completion deadline of December 2008, while its overall progress has been mixed.
Recently, the Gujarat Urban Development Mission (GUDM) additional CEO, Mamta Verma, had sent missives to the municipal commissioners.
Mamta has sought an action-taken report on establishing Project Implementation Unit (PIU), use of Community Participation Fund, and preparing and submitting DPR for urban renewal projects as per JNNURM guidelines and developing PPP projects.
When contacted to know the number of PPP projects proposed or submitted by the civic bodies and ULBs, the authorities tried to pass the buck.
GUDM officials say it falls under Director of Municipalities, while the latter calls it a job of the Gujarat Municipality Finance Board, and that they are just the funding caretakers.
While Verma could not be contacted, the deputy CEO said, “I don't have much idea about PPP. The technical department might be able to answer the query.”
However, sources in the GUDM said that not a single proposal has come from the state as yet. Interestingly, they said that there is hardly any other state in the country that has such proposals.
Private investors are concerned about the rate of returns. So, they are reluctant to invest in the projects that have government funds involved, they added.
Earlier, Union Ministry of Urban Development secretary, M Ramchandran, had written to the state chief secretary on the completion of four years of the JNNURM implementation.
His letter said that the major constraint here is the large gap between demand and availability of resources in the process of urbanisation.
The PPP model could be helpful in filing this gap, and it is therefore important that the state government and ULBs take up more of viable projects, which can attract private investment, he stated.
The letter further said that only the projects, which cannot attract private investment, should be proposed under the JNNURM. The secretary also mentioned that nine projects could utilise only 40 per cent of its total project cost.
Courtesy : www.expressindia.com