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Funds earmarked for 3P-India not utilised in FY15: Sinha

Press Trust of India  |  New Delhi 

Government was not able to utilise the funds earmarked for 3P-India in 2014-15 as the entity to speed up the Public-Private-Partnership mode for projects had not been established.

"The setting up of the 3P-India is under consideration. Funds earmarked in the 2014-15 budget for 3P-India could not be utilised as the proposed entity was not established during that financial year", Minister of State for Finance Jayant Sinha said in a written reply in Rajya Sabha today.

Finance Minister Arun Jaitley had announced Rs 500-crore 3P-India in the Budget 2014-15.

The institution aims to facilitate nuanced and sophisticated models of contracting and developing quick dispute redressal mechanism for the PPP mode of projects in the country, Jaitley had said.

In reply to a question whether the government has reviewed the recommendations of the Kelkar Committee on Public Private Partnerships (PPP) and the actions contemplated, he said the report of the Committee is in the public domain.

"The Committee Report...Included recommendations for action by Central and State Governments, financial institutions, private sector (industry and consultancy services", Sinha said.

Further, some of the action recommended entails ongoing steps, he added.

In its recommendations in December, the panel had suggested easier funding of projects under the public private partnership mode, separate law for such ventures in health and urban transport and a dispute resolution tribunal.

Besides, the eight-member Vijay Kelkar Committee suggestions include review of the model concession agreements, allowing fund raising through zero coupon bonds and setting up of independent sectoral regulators.

It also suggested setting up of an Infrastructure PPP Project Review Committee (IPRC) to deal with the problems being faced by such projects.

First Published: Tue, April 26 2016. 17:07 IST