State bets big on PPP model

The state government on the first day of the two-day Global Investors’ Meet (GIM) on Thursday mooted a plan to develop all infrastructure projects under public-private partnership (PPP) models. Most of these projects are focused on Bangalore, costing a total of `44,256 crore.

Considering the volume of investments that would be required to take up the projects  under PPP model, principal secretary of infrastructure development, Rajkumar Khatri, while addressing a session on transport and infrastructure at GIM, said there were many avenues available in the city for private investors to invest
in the state. However, Vishwas Udgirkar, a senior director of Deloitte, who dwelt on the present status of investments in the infrastructure and the scope for investors under the PPP model to develop roads in the state, said that although an annual investment of `41,899 crore was required, 2011-12 saw only `19,065
crore invested in the road development sector.

He said $27.78 billion was required to build roads in the state. The state government has identified 39 roads having length of 3,600 km for the PPP model. The projects listed for investment potential under the PPP model include the much talked about high-speed rail link from Bangalore to Mysore, monorail from JP Nagar to Hebbal, high-speed rail link to BIA, inter-nodal transit centre at Majestic bus stand, among others.
Khatri said, “We will receive expression of interest for PPP projects. As per the rule, investors have to bid for the projects. We will know how many investors are interested in PPP projects pertaining to infrastructural project only on the second day of the GIM (Friday).”