New Delhi, July 10 (IANS): Finance Minister Arun Jaitley Thursday proposed setting up an institution to provide support to mainstream public private partnerships (PPPs) procedures.
The minister said the new initiative will be executed under the project called 3P India and proposed Rs.500 crore for the scheme.
According to the minister, the institution will facilitate nuanced and sophisticated models of contracting and developing quick dispute redressal mechanism for the PPP mode of projects in the country.
The minister made the announcement while presenting the national budget.
There are several projects that are being carried out under the PPP mode. The government expects to finance most of the infrastructure projects through private partnerships under the PPP model.
However, lack of coordination, legal issues and delay in clearances have led to private sector players finding it difficult to enter projects under the PPP mode, especially in road construction and toll-booth management.
Currently, PPP models have BOT (build operate transfer) and annuity routes. The government is encouraging large-scale private investment, including foreign funds, in several sectors to boost investment through PPP route.