NEW DELHI : A FICCI-EY study titled, ‘Revival of PPP momentum in the transport sector’, highlighted the need to resolve multiple issues dampening the private sector interest and slowing the rate of private investment in the sector. It calls for key interventions to remove the roadblocks to PPP and accelerate the implementation of PPP projects. These interventions would include policy actions, regulatory changes and push the reforms agenda, which will create conducive environment for bringing investments into the sector.
The study was released by Nitin Gadkari, Minister for Road Transport, Highways and Shipping, Government of India; Amitabh Kant, Chief Executive Officer, NITI Aayog; Junaid Kamal Ahmad, India Country Director, South Asia, The World Bank, and other dignitaries at the inaugural session of the India PPP Summit, orgainsed by FICCI in association with the International Chamber of Commerce (ICC) India.
The main recommendations of the study include strengthening of lending institutions, greater participation of insurance and pension funds, establishment of Infrastructure PPP Project Review Committee (IPRC) and the Infrastructure PPP Adjudicatory Tribunal (IPAT), setting up of 3P India as proposed in the Union Budget for 2014-15, mechanism to keep a check on aggressive bidding , need for independent regulators, passing and enactment of pending bills, strong emphasis on performance-based contracts, better preparation of DPR and revisiting the Viability Gap Funding (VGF) Scheme.