HAC Prasad, Senior Economic Adviser to the Union Ministry of Finance stressed on the need to raise the share of private and PPP sector in the total investment in infrastructure to 50 per cent in the 12th five-year Plan.
The share of private and PPP sector in the total infrastructure investment was a little over 30 per cent in the 11th Plan.
Financing this level of investment will require larger outlays from the public sector. But this has to be coupled with a more than proportional rise in private investment, Prasad said while delivering the keynote address at a conference on ‘PPP with special reference to infrastructure development.
The union government is promoting PPPs as an effective tool for bringing private sector efficiencies in creation of economic and social infrastructure assets and for delivery of quality public services.
Stating that inadequate supply of infrastructure is affecting growth, he said the PPPs, particularly in infrastructure, gain importance in todayÂ’s context.
The ‘private participation in infrastructure’ database of World Bank has placed India in the second position next to China in terms of number of PPP projects.
In terms of investments, India is second to Brazil, he said. Energy, followed by transport, telecom and water and sewerage are the major sectors under PPP in the world, he said.
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