Plan panel convenes meet on PPP in state highways Monday

The Planning Commission will host a one-day conference here on Monday to attract public-private partnerships (PPP) for developing state highways.

The conference would be attended by Planning Commission Deputy Chairman Montek Singh Ahluwalia, Road Transport and Highways Minister Kamal Nath and ICICI Bank CEO and Managing Director Chanda Kochhar.

Besides state and Central officials, the representatives of road development agencies, infrastructure developers, law firms and consultants would participate in the programme.

For attracting investment for state highways from all avenues available, the commission has also invited representatives of investment banks, private equity funds, infrastructure funds, construction companies and investment authorities to the conference.

As much as 85 per cent of the ongoing National Highway Development Programme is being proposed to be undertaken through PPP. There is a growing realisation that a similar programme for developing state highways is critical for the growth of the state.

The high growth in infrastructure is considered necessary to target 10 per cent economic growth in the XIIth Plan (2012-17). There is a need for additional fund arrangements from private parties to fund infrastructure development in the XIIth Plan, as state funds would focus on the social sector.

Ahluwalia had earlier said that 50 per cent of the investment in infrastructure development during the XII Five- Year Plan would have to come from the private sector if the country is to realise the investment target of over $1 trillion (about Rs 45 lakh crore) in the next Plan period.

During an infrastructure summit here, the Prime Minister had announced a revision of the investment target in infrastructure to $1 trillion in the XIIth Plan, compared to $500 billion in the current Five-Year Plan.