The government today said it is too early to state the public-private partnership (PPP) model is unsuccessful in implementation of metro rail projects as there are few such projects across the globe.
“The PPP model has been used in development of metro (rail) projects in the world on a very limited scale. As a result there is no evidence of their being unsuccessful...it is too early to judge their (PPP metro projects’) success,” Minister of State of Planning, Ashwani Kumar, said in a written reply in Rajya Sabha.
The statement assumes significance in the wake of recent suspension of services of Delhi Airport Metro Express which was implemented under the PPP mode.
Earlier last year, Delhi Metro Rail Corporation (DMRC) had differed from the Planning Commission’s proposal to develop metro rail projects in 50 cities under the PPP mode.
The Commission had contended that an equity investment of about Rs 1.6 lakh crore would be required to execute these projects in over 50 cities across India with a population of over one million.
Stating funding all the projects would be a problem for the government, the Commission had suggested roping in private companies to implement them under the PPP mode.