Tamil Nadu will give more priority to necessity for infrastructure projects than their mode of implementation.
Mr S. Krishnan, Secretary-Expenditure, Finance Department, Government of Tamil Nadu, also said infrastructure project implementation will be prioritised on the basis of necessity and the option of Public Private Partnership, private investment or pure public sector investment will be decided later.
The State Government is keen on the PPP model but is cautious not to lose out on infrastructure development.
Framework
A framework for this concept in infrastructure implementation in the State is being developed. Tamil Nadu Infrastructure Development Board constituted recently will soon get statutory status through a law to be enacted, he said.
The decision is based on the State's experience in power and water sector, he said.
In the mid-1990s there was a rush of private projects in power and water. “Tamil Nadu is much the wiser,” and understands the limitations of PPP.
It is, however, “conscious that a large chunk of expenditure on infrastructure needs to come in PPP” but this has to be backed by an appropriate policy framework, he said, at a national conference on PPP in urban water sector.
Addressing an event organised by Athena Infonomics, a public policy analysis consulting firm, Mr Suresh Prabhu, Member of Parliament, said public awareness has to be created on the necessity of viable models for delivering products and services to the public.
In India the quantity and quality of delivery by utilities, whether water or power, falls short of ideal. PPP can be an option in meeting the needs. Increasing urbanisation is putting pressure on natural resources such as water, which has to be managed equitably.
However, most of the utilities are bankrupt, he pointed out. Managing water is key to sustainability as it impacts public health, industry and environment.