Eco survey: Revive PPP as stalled projects now account for 7% of GDP

The rate of stalling of projects has reduced over the last three quarters, said the Economic Survey.

Stall projects accounted for 7 percent of GDP in the December quarter, compared with 8.3 percent during the same period last year. The key now is to revive public investment to grow infrastructure, the Survey said.

It said the revival of interest by private players and banks in public private partnership (PPP) would require a review of contracts.

It said the risk in PPP model should be transferred to those who can manage it.

The Survey said PPP Financing structure should attract pension and insurance funds, adding that high projects should shift to e-toll systems and escrow accounts. The Survey also said efforts were needed to reform direct tax system.