The central government is looking at measures both on the policy side and execution side In a bid to boost public-private partnership in infrastructure projects.
The measures were likely to be finalised within a few months.
Topping the list would be the twin pending legislations on R&R and land acquisition amendment.
Speaking in the sidelines of the 'Infra East' organised by Confederation of Indian Industry (CII), Subhas Pani, secretary of the Planning Commission, said the government was keen to bring in more private participation into this sector and there are a lot of things the government is considering like more VGF funds in the construction phase, the golden share concept and changes in the land acquisition act and rehabilitation & resettlement policy (R&RP).
The recommendations were before the Group of Ministers (GoM) and the government decision was likely soon, he claimed.
Land acquisition laws, vital to infrastructure development, needed clarity and amendments to help land acquisition would be pushed through as early as possible, he added.
Infrastructure companies had sought entire Viability Gap Funding (VGF) in the construction phase because funds had dried up at present.
Under the present policy, half of the VGF was paid during construction and rest during operations. “The government is working on the recommendations - it is difficult in the current market scenario but a solution with reasonable safeguards in places was expected soon,” he said.
At present, 20 percent infrastructure project costs was being provided by IIFCL as loan.
The government was keen on treating 50 percent of that loan as subordinated debt or semi-equity to release the pressure on private sector to bring more equity.
Health, education and irrigation were not open for PPP investment but they could be reclassified as basic infrastructure, claimed Pani.
However, with only three years left of the 11th Five-year plan, Planning Commission efforts to increase public investment in infrastructure were facing problems.
The government was likely to fall short of the $500 billion target for infrastructure spending in the Plan period in view of the recession, warned experts.
Pani admitted that the eastern region had not received a fair deal despite having huge gaps in infrastructure and that the region needed to be addressed seperately and allocated higher budgetary amounts.
