The government has constituted a committee under the chairmanship of former finance secretary and chairman of National Institute of Public Finance and Policy (NIPFP), Vijay Kelkar, to revisit and revitalise the public private partnership (PPP) model of infrastructure development.
The committee has been mandated with the task of reviewing the whole experience of PPP policy, including the variations in contents of contracts and difficulties experienced with particular variations / conditions, if any.
It will analyse risks involved in PPP projects in different sectors and existing framework of sharing of such risks between the project developer and the government, in order to suggest an optimal risk sharing mechanism.
The committee will propose design modifications to the contractual arrangements of the PPP based on the analysis and on the basis of international best practices and in the context of domestic institutions as well.
Besides, it would suggest measures to improve capacity building in government for effective implementation of the PPP projects.
The committee may consult various stakeholders in the private sector, government sector, legal experts, banking / financial institutions and academia while firming up its recommendations.
Infrastructure Development Finance Company (IDFC) will provide secretarial assistance to the committee.
The committee has been asked to submit its report within a period of three months from the date of constitution.
Finance minister Arun Jaitley, while presenting the Union Budget for 2015-16 in Parliament, had announced that the PPP mode of infrastructure development has to be revisited, and revitalised, so as to eliminate or reduce risks involved and to rebalance such risks.
Besides Kelkar, the committee has chief secretary of the government of Rajasthan CS Rajan, chairman and managing director of IIFCL SB Nayar, director general of NCAER Shekhar Shah, managing director (corporate banking group) of State Bank of India Pradeep Kumar, a representative of the ministry of road transport and highways - not below the rank of joint secretary, IDFC managing director Vikram Limaye, barrister-at-law of Kolkata High Court Sudipto Sarkar, retired Indian Revenue Service official P S Behuria and joint secretary in the department of economic affairs of the ministry of finance Sharmila Chavaly as members.