Plan Panel opposed to CAG scrutiny of PPP projects
12 Sep 2011
The Plan Panel is opposed to CAG scrutiny of the role of private sector players in the implementation of Public Private Partnership (PPP) projects.
According to Planning Commission deputy chairman, the performance of the public part of PPP projects should be subject to proper scrutiny but where the private sector was given flexibility it could not be subject to CAG scrutiny.
A bill seeking expansion of the scope of the Comptroller and Auditor General of India (CAG) to scrutinise PPP projects besides regulators, including SEBI, TRAI and IRDA, is under the finance ministry consideration.
The bill, seeking expansion of the CAG Act, 1971, would likely be tabled during the forthcoming winter session of Parliament.
Under the PPP mode, projects are implemented based on a contract or concession agreement between a government or statutory entity on the one side and a private sector company on the other side, for delivery of an infrastructure service on payment of user charges.
Planning Commission deputy chairman, Montek Singh Ahluwalia was also not in favour of bringing private players in PPP projects under the ambit of Right to Information Act.
