TN introduces new legislative framework to deal with PPP projects

The state claims the framework to be first of its kind in the country

The state of Tamil Nadu has put in place A legislative framework to deal with Public-Private-Partnership projects in the form of the Tamil Nadu Transparency in Tenders (PPP Procurement) Rules.

In his address at the State Assembly today Tamil Nadu Governor K Rosaiah said “Tamil Nadu Vision 2023 document unveiled by the Chief Minister heralded a new era for guided economic development, particularly in developing economic infrastructure in the State”.

In this document, 217 priority infrastructure projects have been specifically identified for execution. A policy framework and institutional support system has been put in place in the form of the Tamil Nadu Infrastructure Development Act, Rules and Regulations.

“A legislative framework to deal with Public-Private-Partnership projects has also been put in place in the form of the Tamil Nadu Transparency in Tenders (Public-Private-Partnership Procurement) Rules. Tamil Nadu is the first State to have such a legislative framework,” said the Governor.

According to Vision 2023 document, the total investment to enable universal access to infrastructure services over the 11 year period is estimated at Rs 15 lakh crore (around $330 billion).

The Governor noted, Tamil Nadu Investment Promotion Programme (TNIPP), with the assistance of the Japan International Co-operation Agency (JICA), was launched by this Government with an assistance of Rs 770 crore. This project is aimed at the removal of infrastructural bottlenecks through small and medium size projects.

Twelve such projects at an estimated cost of Rs 834 crore have already been approved under this programme covering sectors like Power, Water Supply, Urban Amenities and Roads.

“This is a new initiative which provides a flexible funding option with external aid to improve the investment climate in the State,” said the Governor.