Comprehensive PPP policy on infra sector to encompass social sector

“A comprehensive policy framework for public private partnership (PPP) in the building of physical infrastructure and social sectors such as health and education is on the anvil. The policy will lay down guidelines for the entry of private players and implementation of infrastructure projects of both the Centre and the states”, stated R Gopalan, secretary, department of economic affairs, ministry of finance.
 
He said that the new PPP policy would rest on three pillars. The first pillar of the policy’s architecture is to ensure security in legal framework while not becoming excessively prescriptive. “It must facilitate focusing on achieving outcomes, while setting broad parameters in which partners can design and implement projects that they agree on. Dense legislation that seeks to micromanage the PPP process will not only deter prospective investors but also stifle innovations to meet the unique requirements of diverse sectors. Hence, the emphasis will be on flexibility with simple well defined rules and principles,” he said. “The second key pillar of the PPP policy would be a codification of the vast array of initiatives that have already been undertaken by the Government in the past to promote PPPs in the country.”
 
“The third pillar of the policy is the establishment of processes that are required for second generation PPPs with focus on appropriate public oversight and monitoring of PPP projects and ensuring that a value for money rationale is adopted while developing projects”, he adds.
 
Gopalan also said that the policy must aim to establish a consistent framework to enable PPPs across sectors, which will enshrine the core principles of transparency in procurement, adequate competition, sanctity of the contracts, speedy dispute resolution, etc.

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