There is a need to adopt a PPP model to promote infrastructure growth in the country. This was voiced by panellists at a Session on “The Infra Expanse- A Super Imperative for Growth” at The CII Partnership Summit which was organised by the Confederation of Indian Industry (CII) in association with the Ministry of Commerce and Industry, Government of India and the Government of Maharashtra.
The speakers discussed the role of government funding and international financial institutions in addressing the public’s development needs beyond basic infrastructure like ports and airports.
Chhuon Dara, Secretary of State to Ministry of Commerce in Cambodia stated that Infrastructure Development will boost trade and stimulate jobs and growth between India and Cambodia. He pointed to the opportunities in the infrastructure sector in Cambodia.
“With performance related projects, there is always ambiguity with political issues and financial issues where problems can always arise. Nobody talks about the successful projects when there are lots of projects to talk about,” said Ajay Durrani, Managing Director of Indian Sub-Continent Covestro India about the Ujala Scheme for sustainability.
Subhash Patil, Partner & Leader of Smart Cities of Price Waterhouse Coopers (PWC) said, “If you see the funding from the central and state governments, it is about 20% of the smart city plan. So I think private participation becomes critical here.”
Mishaal Kanoo, Chairman of The Kanoo Group, UAE said, “What works best for us is a joint venture structure. We like to see what we can bring and what other companies can. The idea is that everyone gets a piece of the pie.”
RA Rajeev, Metropolitan Commissioner of Mumbai Metropolitan Regional Development Authority (MMRDA), elaborated on coordination efforts between various stakeholders and saidthat greater understanding is required.
Mangal Dev, Head of Indian & South Asia Region for Hitachi Rail Systems Co explained, “In the railway sector, you can have projects which are very large sized and projects that can be broken down into small packages. Depending on the project, you can have different models.”
“I don’t think there is one model that fits all. Different countries have different models. For example, U.S. has a more developed and mature market where the risk paradigm is different,” explained Abhishek Poddar, Managing Director of Macquire Infrastructure and Real Assets.
Pranjal Sharma, author of Kranti Nation, in his opening rmarks stated that India must invest approximately $777 billion in infrastructure by 2022 to achieve sustainable development. Yielding the fruits of previous year’s labour, India has seen impressive development in terms of infrastructure that positively impacted service delivery, rural development like construction of roads and sanitation facilities.