PPP model for developing urban infrastructure: govt

Government will encourage public private partnership (PPP) model for developing infrastructure like water supply and municipal solid waste management in the cities across the country, Urban Development Minister Kamal Nath informed Lok Sabha today.

Noting that both Centre and state Governments could not meet funds for entire urban infrastructure projects, he said, "we want to encourage" PPP model and part II of the JNNURM is being planned giving emphasis to it.

He was replying to a question asked by Shiv Sena leader Anant Geete whether the Government would encourage PPP model for electricity generation and production of fertiliser from urban solid waste management.

The Minister also cited the 24x7 water supply project - a pilot project on PPP model inaugurated in Nagpur recently - as an example on how the model can be emulated in other cities.

Municipal solid waste management is a state subject and is responsibility of the state government/urban local bodies to plan, design, implement, operate and maintain the Solid Waste Management (SWM) system in the urban areas of the country with state plan funds.
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However, the Union Urban Development Ministry is providing financial assistance to some extent to state governments for implementation of the municipal SWM, Kamal Nath said.

Under Urban Infrastructure and Governance (UIG) Sub-Mission and Urban Infrastructure Development Scheme for Small and Medium Towns of JNNURM, solid waste management is one of the admissible component for grant of additional central assistance (ACA).

So far, 43 SWM Projects have been approved under UIG with an approved cost of Rs 2,052.45 crore with ACA commitment of Rs 1,035.48 crore and 56 SWM projects have been approved under UIDSSMT with an approved cost of Rs 342.02 crore with ACA commitment of Rs 282.88 crore, the Minister said.