Maharashtra considers overhauling PPP model for infra development

CAG made scathing observations over lack of proper tendering, monitoring and feasibility study

The Bharatiya Janata Party (BJP)-led government in Maharashtra is planning to bring about more transparency in its public private participation (PPP) policy. The government plans to put in place short- and medium-term plan with clear demarcation of implementing agencies such as state public works department, Maharashtra State Road Development Corporation and Mumbai Metropolitan Region Development Authority associated with projects based on PPP model.

The move comes in the wake of Comptroller and Auditor General’s adverse remarks on delays in finalisation of the executing agency, financial closure, non-issuance of tender forms to prospective bidders in a few projects and inadequate quality control measures and monitoring of the PPP projects.

The CAG, in its report for the year ended March 2014, also observed that there were shortfalls ranging from 34 per cent to 100 per cent in conducting the mandatory tests from government laboratories. The debt equity ratio quoted in financial bids in at least eight four-lane projects was not observed while borrowing the loans from financial institutions.

A BJP minister, who did not want to be quoted, told Business Standard: ''The state government cannot simply dump the PPP model considering certain pitfalls. We will make all efforts to improve it for the effective implementation of infrastructure development. The government will lay emphasis on carrying out intensive feasibility study for proper traffic census, determine the reasonableness of the components of the project cost and ensure availability of land before execution of projects.''