Infrastructure to get further boost
The committee set up to recommend reviving the public-private partnership (PPP model) of infrastructure development has suggested that the government should encourage easier funding for construction projects with long gestation periods. “PPPs are an important policy instrument that will enable…

The committee set up to recommend reviving the public-private partnership (PPP model) of infrastructure development has suggested that the government should encourage easier funding for construction projects with long gestation periods.

“PPPs are an important policy instrument that will enable India to compress time in this journey towards economic growth and development,” the Vijay Kelkar Committee said.

“A successful and growing stream of PPPs in infrastructure will go a long way in accelerating the country’s development process,” it said in its report to the Finance Ministry.

“The finance ministry should allow banks and financial institutions to issue zero coupon bonds, which will also help to achieve soft lending for user charges in infrastructure sector”, it said.

The government “must move the PPP model to the next level of maturity and sophistication” and foster trust between private and public sector partners in implementing PPP projects.

There should be provision for monetisation of viable projects which have stable revenue flows after engineering, procurement and construction delivery, the committee reported.

Related Articles

Related

Construction sector may need 2.5 lakh drone operators soon

The construction sector is the fastest-growing adopter of commercial drones, and is likely to require 2.5 lakh people with UAV (unmanned aerial vehicle) operating skills in the coming years, a report said. Highways, roads, bridges and housing will take the lead in the...

read more

Boost in construction ups demand for skills training

Amid the rising demand emanating from the real estate sector, the government has stepped up efforts to create a reservoir of technically skilled people to meeting demand of the construction and allied sectors. It has been decided that it is important that most fresh...

read more

More focus on infra pushes labour cost in realty industry

The Central government’s increased focus on infrastructure is one of the major reasons behind the rising labour cost in real estate industry, according to   industry experts. “In the last three years, the cost of labour had definitely increased in the range of...

read more

0 Comments

Submit a Comment

Your email address will not be published.

Share This