The government has promised stakeholders to resolve the regulatory and financing issues in the infrastructure sector to expedite infrastructure projects especially those which are being promoted under the public-private partnership (PPP) mode. This assurance came after the meeting taken by Shaktikanta Das, Secretary, Economic Affairs with the representatives of the infrastructure companies on Monday, October 26, 2015.
Das held a meeting with infrastructure consultants, players and lenders, who have burnt their fingers in PPP. The meeting was organized by industry chamber CII and was also attended by RBI Deputy Governor R Gandhi, SBI Chairperson Arundhati Bhattacharya and officials from infrastructure ministries. In the meeting the industry representatives raised regulatory and financing issues, difficulties and certain issues which they have been encountering as well as capacity building.
Besides, issues concerning dispute resolution with regard to concession agreement for implementing Public Private Partnership (PPP) projects were also discussed. The government has already set up a committee under former finance secretary Vijay Kelkar to suggest a framework for revitalizing the PPP model, which has faced some trouble after initial success. The terms of reference of the committee include measures to improve capacity building in government for effective implementation of PPP projects, review of experience of PPP policy, analysis of risks involved in such projects in different sectors and existing framework of sharing of such risks between project developer and government.
Das also said that the panel is expected to submit its report by November. Some of the recommendations, if accepted by the government, can be operationalised far quicker. But some of the recommendations may require little more time. So it will depend on content of recommendation of the Kelkar panel. Further discussion in this regard would also take place between the RBI, banks and department of Financial Services.