Infrastructure development: Kelkar panel on PPP revival submits report to Jaitley

New Delhi: Government-appointed panel headed by former finance secretary Vijay Kelkar on reviving the PPP model for infrastructure development submitted its report to Finance Minister Arun Jaitley today. The government, according to economic affairs secretary Shaktikanta Das, will take decision on the recommendations by the committee soon.[caption id=“attachment_2514054” align=“alignleft” width=“380”]  The Chairman of the Committee on Revisiting and Revitalising PPPs in Infrastructure, Vijay Kelkar presenting its report to the Union Minister for Finance, Arun Jaitley, in New Delhi on 19 November 2015. Image courtesy PIB[/caption] On the timeline for implementation of recommendations, Das said, “I would not like to specify a timeline to implement the report because we have to go through the report and we have to see what kind of approvals will be required. “Whether it requires administrative approvals within the ministry …obviously it will require some amount of inter-ministerial consultation. We have to see what needs to go to the Cabinet and if there is a legislative issue…we also have to go through it.” The Kelkar committee was set up to look into the issues confronting the PPP sector. “Over the last few years, PPP sector, PPP projects which were doing well for quite some time have run into various kinds of problems,” Das said. The PPP projects, he added, faced a host of problems relating to contractual issues, financing and implementation which the committee was expected to address. “The committee was requested to look into all these aspects. The committee has held detailed deliberation with various stakeholders and other experts. We will go through the report and the government will take decisions on the recommendations as early as possible,” Das added. The government, he added, will also make the report public soon. “The minister said that he would like to implement the report at the earliest possible,” Kelkar said after submitting the report. Jaitley in his last budget speech had said that PPP infrastructure development model has to be revisited and revitalised. Following the announcement, a committee of 10 members under the chairmanship of Kelkar, currently chairman of Institute of Public Finance & Policy, was set up. The terms of reference of the committee included measures to improve capacity building in government for effective implementation of PPP projects, review of experience of PPP policy, analysis of risks involved in such projects in different sectors and existing framework of sharing of such risks between project developer and the government. Economic affairs secretary Shaktikanta Das in a tweet said: “The PPP sector (is) key to infrastructure projects. Sectoral revival can bring in big investments. Working on it seriously”. Das further said the Kelkar Committee on PPP projects submitted its report today and the government will examine it and take early decision. According to a finance ministry statement, the Terms of Reference (ToR) of the Committee included analysis of risks involved in PPP projects in different sectors and existing framework of sharing of such risks between the project developer and the government, thereby suggesting optimal risk sharing mechanism. Also, the committee was to propose design modifications to the contractual arrangements of the PPP projects based on the above and as per best practices and institutional context. A measure to improve capacity building in the public sector for effective implementation of PPP projects was among the ToRs of the Kelkar Committee report. PTI