Uttarakhand yet to constitute EGoM for clearing PPP projects

Under the new policy, infrastructure projects will undergo PPP tests to ensure better value for money for the state and stakeholders

After declaring a new public-private partnership (PPP) policy in Uttarakhand last year, the state government is yet to constitute an empower committee on infrastructure (ECI) as well as empowered group of ministers (EGoM) to clear key infrastructure projects.

“The government has so far not constituted both ECI and EGM under the new PPP policy. But we are hopeful that in coming days the government may take a positive decision in this regard,” said a government official.

The government came out with the new Uttarakhand Public Private Partnership (PPP) policy with an aim to speed up projects and give push to infrastructure facilities in the hill state last year. A notification to this effect has already been issued. Experts say the policy intends to create conducive environment for private investments and set up a robust dispute mechanism and regulatory framework for all projects.

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

Under the new policy, all infrastructure projects will undergo rigorous PPP tests to ensure better value for money for the government and stakeholders.

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

For better coordination, a PPP cell will be set up in all line departments for obtaining various clearances. No headway has been made in this direction also.

For the project approvals 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 Empowered Group of Ministers (EGM) which is yet to be constituted.

Only all those projects where investments are above Rs 250 crore would have to seek the clearance of the state cabinet. “In earlier cases, even small projects like schools under PPP mode where investments were less than Rs 25 crore were taken to the state cabinet for the 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. “The PPP projects like Kotdwar bus terminal require clearance from both ECI and EGM where investment is around Rs 50 crore,” said the official.