Centre planning to increase share in PPP projects under JNNURM

To encourage public private partnership (PPP) projects in urban infrastructure sector, the government is planning to enhance the quantum of funds it provides to such projects under its flagship JNNURM scheme.
Speaking at a seminar here, Urban Development Minister Kamal Nath said it was proposed that in the second phase of JNNURM, PPP projects should getting a greater share from the central government.
"In our next urban renewal mission programme, we propose that the central share in the case of PPPs will be enhanced by 20 per cent," he said.
Later, Nath told PTI that this increased share would be provided as the Viable Gap Funding (VGF) for such projects.

Emphasising the need for PPP, he said that it has been estimated that in the 12th Plan, 25 per cent of total requirement for urban infrastructure need can potentially come through PPP.
Currently the PPP model is being applied to water supply, solid waste management, metros and other areas but in future the scope of PPP projects will have to be extended, Nath said.

One of the highly publicised PPP projects in urban infrastructure sector - the Delhi Airport Metro line has got into troubles, but that notwithstanding the UD ministry has consistently advocated developing PPP models so that private sector is involved in developing urban infrastructure.

Nath, who was speaking at a Indo-Dutch seminar on Urban and Regional Planning, emphasised on the need to form long term vision while planning urban spaces.
"Long term plan should at least for 30 to 50 years instead of the current practice of formulating master plans which are for 10 or 20 years... The short term plans can be an integral part of the long term plans," he said.