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Govt may lease out infrastructure projects to private operators: Niti CEO

CEO Amitabh Kant blamed the private sector for the current crisis in PPP investment in India

Press Trust of India 

Amitabh Kant
NITI Aayog CEO Amitabh Kant. Photo: PTI

The needs to exit and even look at handing over jails, and colleges to the as happens to be the case in countries like and Australia, said today.

At the same time, he was highly critical of India's private sector, terming it as "most irrational" and "insensitive".

Kant said it messed up projects by aggressive bidding and creating current crisis in the (PPP) model.

"The has done a lot of big projects but the is not good at operation and maintenance. Therefore, the must start the process of reverse BOT (build, operate and transfer), must sell out projects and let the handle it," he said addressing Summit 2017, organised here by industry body Ficci.

Citing the example of dirty bathrooms at airports, which fall under the Airport Authority of India, he said: "We must bring in the That is, the fastest way to bring in and bring money back in infrastructure. These projects are fully de-risked."

He added: "The country needs to move into new areas of There is no need where jails, schools, colleges should be run in sector. At least experience of many countries like and shows that is capable of doing very good work in creation of quality infrastructure over a long period of time in social sector."

Kant also said that there were huge opportunities for the in like station re-development projects, Port construction and Sagarmala projects.

There is no shortage of money in the market and can use the opportunity by de listing its projects, he said.

"Need of the hour is to market these projects well," he said, adding that even the freight corridor being built should be privatised.

"The dedicated freight corridor build by railways can reduce journey of 14 days to 14 hours which is a paradigm shift that is looking for," Kant said.

Blaming the for the current crisis in in India, he said there are hundreds of examples where has gone for aggressive bidding and didn't bother to do due-diligence as a result of which the mode has got a setback.

"has performed very badly... in is most irrational, insensitive I have seen," Kant said citing the example of aggressive bidding in highways and coal sectors.

He said it is high time that the understood that in the long run it causes pain to itself and it causes pain to Indian economy and that the bidding should be made at a rational basis.

Citing the example of Delhi-Jaipur expressway he said it is time that the should do rational bidding and execute projects in a time bound manner.

Kant also stressed the need of restructuring the model concession agreement (MCA) so that the gets more incentives and is encouraged for investments.

First Published: Wed, July 26 2017. 15:52 IST