PPPs to play key role in public service delivery, says Naveen Patnaik

The aim will be to upgrade infrastructure, to create a growth multiplier

Aiming to make Odisha's multi-faceted schemes and programmes in different socio-economic sectors sustainable, the state government is betting big on the development of infrastructure through the private-public partnership (PPP) route.

"A key objective of my government now is to progressively address the huge task of achieving sustainable and inclusive economic growth and accelerating human development in the state. This places greater emphasis on upgradation and improvement of the infrastructure base in the state and efficient delivery of public services. We realise that infrastructure development alone would make our multi-faceted schemes and programmes in different socio-economic sectors sustainable, leading to greater growth multipliers," said Chief Minister Naveen Patnaik at the Business Standard Odisha Round Table-2014.

He stressed that PPPs will play a pivotal role in the achievement of this vision. The state has targeted attracting investment of at least Rs 5,000 crore in the infrastructure sector through PPPs during the 12th Plan period. "We are well on track to achieve this target," said Patnaik.

Several initiatives have been undertaken in municipal corporations for solid waste management and street lighting through PPPs. Dedicated budgetary provisions have been made for viability-gap funding, which would catalyse the geographic spread of PPPs in Odisha, Patnaik said.

Understanding the need for road, rail and air connectivity, the state has lined up big investments in these critical infrastructure areas as well.

The Odisha State Highways Development Project has been launched for widening all state highways over a three-year period. The projects are being implemented through external assistance as well as PPPs.

The state government has been investing in special-purpose vehicles for faster execution of railway projects of economic importance. For better air connectivity, Biju Patnaik Airport has been upgraded to an international airport, while another airport at Jharsuguda is being developed with partial state funding.

Urban development has also found place in the state government's agenda of priority. The state is taking up projects to improve the urban transport system, sewerage, drainage, drinking water supply, sanitation and housing on a large scale.

To ensure uninterrupted power supply for the people of Odisha, the state government is investing heavily in the power infrastructure. It is implementing schemes like CAPEX in the power sector, and the installation of 550 33/11 KV sub-stations to improve the quality as well as quantity of power supply in the state. Besides, massive investments have been attracted from the private sector for setting up thermal power stations, he added.

Odisha, which has drawn considerable investment in the metals and mining sectors over the past decade, is now keen to attract investors to set up industries that can run without dependence on its rich mineral resources.

"We are endeavouring to diversify Odisha's investment base by focusing on sectors not dependent on natural resources, such as agribusiness, tourism and information technology. Extremely forward-looking policies are under formulation for the fishery and poultry sectors," Patnaik said.

He expressed the hope that once these policies were in place, they would attract large commercial investments in these sectors.

The series of reform measures in the industry, infrastructure, financial and social sectors over the past decade has resulted in rapid growth for the state during both the 10th and 11th five-year plan periods.

The remarkable fiscal turnaround achieved by the state over the past decade is an example for the whole country. The state could generate a sizeable fiscal space for increasing the plan and capital investment in essential sectors to bridge the developmental gaps, Patnaik observed.

The state believes that growth in agriculture can result in faster reduction in poverty. In order to provide focused attention to this sector, the state government introduced a separate Agriculture Budget from the year 2013-14, Patnaik added. n

Besides, the state has formulated the food processing policy, 2013 to attract investments in food parks and food processing units, he said.