New Delhi: The government is working on asophisticated and flexible framework for the Public PrivatePartnership (PPP) model to boost infrastructure development,Finance Secretary Arvind Mayaram said today.
"What we need to do is to have a more sophisticated PPPframework which we are working on now. Which means a frameworkwhich looks at PPPs in a manner where there is flexibility tofactor in the changes in the circumstances that run over aperiod of 25-30 years," he said at a Ficci event here.
Mayaram also underlined the need for de-stressing the PPPmodel, which is facing various regulatory hurdles, for
"There is a strong case to see whether we can look atdeveloping a framework which is going to decide what stress
is, who is responsible for stress, what is causing the stressand how we deal with them?
"... We would meet to now look at what a stress is andhow it can be defined," he said.
As regards the risks associated with PPP projects,Mayaram made it clear that the government alone cannot bear
the entire responsibility. The risk should be shared betweenthe private sector and government, he added.
Although over 900 PPP projects are under various stagesof development, they suffer from various weaknesses includingcontractual rigidities and lack of quick dispute redressalmechanism.
Finance Minister Arun Jaitley in his Budget speech hadproposed setting up of an institution to provide support to
mainstream PPPs called 3P India with a corpus of Rs 500 crore.
The 3P India will look at issues relating to regulation,financing structures, stress in project, management of
contract over a period of time and also issues relating tocapacity building both in public and private sector, Mayaramsaid.
"It will be a unique and powerful institution which willrejuvenate the entire universe of PPP which seems to be
slowing down at the moment," he added.
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Updated Date: Jul 23, 2014 14:52:02 IST