Uttarakhand unveils new PPP policy

After nearly four years of dithering, the Uttarakhand government has finally notified its new public-private partnership (PPP) policy, which is expected to boost and give push to infrastructure facilities and projects in the hill state.

The notification comes after the state Cabinet put its seal of approval on the policy, which intends to create a conducive environment for private investments and set up a robust dispute mechanism and regulatory framework for all projects.

“The policy puts in place an effective and efficient institutional mechanism for speedy clearance of the projects,” said Sumit Barua, who is heading the PPP cell that had drafted the policy in 2008.

The priority sectors being covered under the policy include urban development, energy, agriculture, rural development, transport, tourism, health, education, trade, and industry.

Under the new policy, all infrastructure related projects would undergo rigorous PPP tests to ensure better value for money for the government as well as other stakeholders.

The government would also constitute an empowered committee on infrastructure (ECI) consisting of a group of secretaries, under the chairmanship of the chief secretary. “The ECI would be a nodal agency to coordinate all efforts of the state government regarding development of the infrastructure sectors involving private participation and funding from various resources,” said Barua.

For better coordination, a PPP cell will be set up in all line departments for obtaining various clearances. Project up to Rs 5 crore would be approved under the existing rules of business pertaining to Uttarakhand Procurement Rules 2008. The projects ranging between Rs 5-250 crore would be approved by the empowered group of ministers Only those where investments are above Rs 250 crore will have to seek the clearance of the state Cabinet. “ Earlier, even small projects like schools under the PPP mode, where investments were less than Rs 25 crore, were taken to the state Cabinet for final approval. And now, there will be lot of shortcuts also,” said a government official.

The government has, so far, brought nearly 107 projects under the PPP mode but most of these projects are gathering dusts in files or under various stages of clearances.

“With the new policy, we can now hope of giving boost to various projects,” said Alok Kumar Jain,the state chief secretary.