"The state governments must create an enabling environment
for the success of the public private partnership (PPP)
projects with transparent, regulatory and legal frameworks.
Since, infrastructure projects have long gestation periods,
the governments must take steps to understand the risk
perception of the investors and provide standard treatment
to all PPP projects," said S Jaipal Reddy, Union
Minister for Urban Development and Poverty Alleviation.
Inaugurating the fourth infrastructure summit of Confederation
of Indian Industry (CII), Suminfra 2006, in Chennai, Reddy
said that successful PPP projects not only attract foreign
investment but also introduce new efficiency into the
to him the central government will invest Rs50,000 crore
in the next six years in various urban development projects
in partnership with state urban local bodies. The latter
would be encouraged to raise an equivalent amount for
additional funding. The government of India is also keen
on extending the viability gap funding of upto 20 per
cent of the total cost of the major infrastructure projects
such as metro rail projects.
Delivering the keynote address, Dr Y S Rajasekhara Reddy,
chief minister of Andhra Pradesh said, infrastructure
development must be integrated with social development.
He said, Andhra Pradesh has already invested over Rs9,900
crore in the last two years and created the irrigation
potential of over 515,000 acre.
2006-07 alone, the government was investing over Rs10,000
crore to create additional irrigation to irrigate 750,000
acres, disclosed Reddy, adding, "The government is
planning major housing initiatives with the aim to provide
houses for all in the state within the next three years."
According to him despite giving free power to over 22
lakh farmers, the state's power utilities have won the
highest Crisil rating. The utilities are able to perform
well as they are constantly bringing down the transmission
and distribution losses, which are now less than 20 per
cent at present.
government is also upgrading the infrastructure of the
power generation and distribution facilities. The state
has brought down the industrial power tariff by 4 per
cent in recent years and has not so far increased the
tariff for domestic use. The state has the lowest power
tariff for industrial use in India."
Dr Poongothai Aladi Aruna, minister for social welfare,
government of Tamil Nadu, said, that foreign direct investment
(FDI) in infrastructure is non-negotiable. She said that
the single window system of Tamil Nadu has now become
two-tiered with a state level investment promotion board
to monitor and expedite all mega projects exceeding an
investment of Rs100 crore and a project approval authority
to monitor the projects with investment less than Rs100
According to P J Joseph, minister for public works department,
government of Kerala, the state government is encouraging
urban development and infrastructure projects in the areas
of road, communication, airport, sea port and others on
Speaking about Karnataka's plans Katta Subramanya Naidu,
minister for large and medium scale industries, said the
government is shortly coming up with an industrial policy
that would aim at a 10-12 per cent industrial growth.
The focus is on developing special economic zones in 15
upon the governments to ensure financial returns on infrastructure
projects R Seshasayee, president, CII said the regulatory
environment must be proactive.