Finance Ministry released Draft National Public Private Partnership for Infrastructure Projects

The finance ministry on 27 September 2011 released the draft national public-private partnership (PPP) policy aimed at creating a framework for implementing infrastructure projects across sectors. The development follows the announcement made by the Finance Minister Pranab Mukherjee in the Budget. The draft of PPP policy was released in pursuance of government's commitment to improve the level and quality of economic and social infrastructure service.

The Policy seeks to expand the scope of the PPP scheme. The 26-page draft policy seeks to put in place the broad principles for pursuing a project on PPP basis. it also provides a framework for identifying, structuring, awarding and managing PPP projects.

The policy addresses the issues concerning definition of various terms and also processes so that a clear and consistent position can be adopted by stake holders, including centre, states and private investors.

The policy was designed to ensure that a value-for-money rationale is adopted with optimal risk allocation in project structuring with life cycle approach.

It aims to develop governance structures to facilitate competitiveness, fairness and transparency in procurement and attaining appropriate public oversight and monitoring of PPP projects.

The government aims to bring more transparency in the PPP projects which are mainly undertaken to provide public service by private players. The government is envisaging an investment of USD 1 trillion in infrastructure sector during the 12th Five-Year Plan (2012-17), up from USD 500 million in the current Plan.