TN has 2nd highest share in urban development projects: Assocham

The study talks about projects that have been put to service delivery under the PPP model

The state of Tamil Nadu has the second highest share of over 29% with six projects worth over Rs 1,681 crore in the urban development sector that have been put to service delivery under the public-private partnership (PPP) model, according to Associated Chambers of Commerce and Industry of India (Assocham).

There are about 49 urban development projects worth over Rs 5,700 crore under operation in the PPP mode, according to a sector specific analysis of Assocham.

Andhra Pradesh (four projects worth about Rs 843 crore), Karnataka (four projects worth about Rs 804 crore), West Bengal (10 projects worth about Rs 591 crore) and Gujarat (one project worth about Rs 485 crore) are other leading states in this regard.

Haryana accounts for maximum share of over 85 per cent in the total number of projects under construction in the urban development sector under the public-private partnership (PPP) model as of August 2012, according to the ASSOCHAM analysis.

“Of the total 81 urban development projects worth over Rs 78,000 crore under construction in the PPP mode across India, Haryana accounts for maximum share of over 85% with 12 projects worth over Rs 66,800 crore,” said Ravi Sannareddy, chairman of Assocham Southern Region Council.

He added, of the total 881 PPP projects worth over Rs 5.4 lakh crore taken up under the PPP model across India, 181 projects worth over Rs 99,300 crore are under different stages of implementation,” said D.S. Rawat, national secretary general of Assocham while releasing the findings of the chamber’s analysis.

Urban Development sector has the share of about 20.5% in the PPP projects under construction in various sectors,” he added.

Andhra Pradesh ranks second with seven urban development projects under construction in PPP mode worth about Rs 2,700 crore followed by Madhya Pradesh where nine projects worth over Rs 2,650 crore are under construction followed by Rajasthan and West Bengal where seven projects worth over Rs 1,400 crore and 12 projects worth over Rs 1,200 crore are under construction respectively.

“About 29 projects worth over Rs 9,800 crore are under bidding in the urban development sector,” highlights the ASSOCHAM analysis.

With three projects worth over Rs 3,500 crore, Maharashtra has the highest share in urban development projects under bidding. While Karnataka has the highest number of projects under bidding in the urban development sector with 10 projects worth over Rs 1,700 crore.

About six projects worth over Rs 3,600 crore in the urban development category under PPP mode are in the expression of interest (EOI) stage, with one project in Kerala worth over Rs 3,000 crore and three and two projects in Jharkhand and Karnataka respectively.

There is no information of about five projects worth over Rs 465 crore in the urban development category with two of them worth over Rs 440 crore in Gujarat and three worth over Rs 23 crore in Kerala, said in the report.

Besides, two projects worth about Rs 1,400 crore in Delhi have been reversed to the public.

The reported noted none of the projects in the urban development sector under the PPP mode have got cancelled.

Promotion and facilitation of urban centres through inclusive and sustainable ways is very crucial considering that urbanisation is the engine of India's economic growth," said Rawat. There is a need for the administration to step up its performance on delivering basic urban services, improve the governance systems, planning and funding policies, institutions, and bolster the capacity and capability, according to Assocham.