Plan panel opposed to CAG scrutiny of PPP projects

The Planning Commission on Monday opposed a proposal to bring public- private partnership projects under the scrutiny of the Comptroller and Auditor General of India (CAG), and said it should not have jurisdiction over projects that have private sector involvement.

“The performance of the public part of the (PPP) project should be subjected to proper scrutiny but obviously where the private sector (is given) flexibility ... You cannot subject that to CAG scrutiny,” Planning Commission deputy chairman Montek Singh Ahluwalia told reporters on Monday. The Commission is also against bringing such projects under the ambit of the Right to Information Act.

A bill seeking to expand the scope of CAG to scrutinise PPP projects, besides regulators, including Sebi, Trai and IRDA, is under consideration of the finance ministry. The bill, which seeks to replace the CAG Act, 1971, is likely to be tabled in the winter session of Parliament.

Under the PPP mode, the project is implemented based on a contract or concession agreement between a government or a statutory entity on the one side and a private sector company on the other, for delivering an infrastructure service on payment of user charges.

“If you (government) have specified that they (private players) must do certain things and you are monitoring whether they are doing that and all of that is available through RTI (via the concerned authority). But how they are doing it is entirely a private sector matter. That need not be subject to RTI,” said Ahluwalia.

At present, private players do not come under the definition of public authority for the purpose of the RTI Act. Thus information cannot be sought about the project from firms implementing them under the PPP mode.”

Government-appointed regulators or authorities also refrains from providing information about such PPP projects on the plea that those are being implemented by private firms.

A public authority, as defined under Section 2(h) of the RTI Act, includes non-governmental bodies only if it is substantially financed by the central government. The government is at present implementing several large infrastructure projects such as airports, ports and road that come under the PPP mode.

The government is aiming to award concessions for over 7,300 km (roads) by the end of this fiscal, which is expected to harness private investment of over Rs 50,000 crore.