As per the industry body ASSOCHAM, the government by placing importance on Public-Private-Partnership (PPP) mode to build infra, should spend at least 15% of its entire expenditure budget on creating capital assets. It has laid emphasis on PPP mode to build infrastructure such as roads, ports and airports.
Out of the total expenditure of Rs 14.90 lakh crore budgeted for the current fiscal, only Rs 2.04 lakh crore would be spent on building the capital assets. Further, to restore the country's economy, the government should enhance basic infrastructure as otherwise manufacturing, services and the social sectors could suffer.
The only option left is to go for the PPP model of development for which a greater clarity is required in terms of assuring transparency, sensible return to investors and a fair deal to the users of infrastructure like highways, airports. PPP mode projects should be further explored in sectors like education and healthcare.