The Indian PPP Experience at the State Level

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The Indian PPP Experience at the State Level
Executive Roundtable on PPPs FOR INFRASTRUCTURE
IN INDIA April 4-5, IIT-Madras, Chennai

• Shailesh Pathak, ICICI Venture
• Ashwin Mahalingam, IIT-Madras

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PPP Bottlenecks

• Lack of Legislation
• Absence of Policies and Frameworks
• Increases Time, Transaction Costs

Institutional
Organizational
Levels

• Economic Viability
• Social Acceptance
• Viable Fees/Tariffs
• Inclusive Growth
• Equitable Contracts
• Project Governance
• Management, Regulation and Oversight
• Public-Private interface
• Too many agencies for coordination and approval

Project
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PPP Enablers

• IIPDF, Panel of Transaction advisors ..
• PPP Cells
• Government or separate entity?
• Roles and Responsibilities?
• PPP repository
• Documentation and Knowledge dissemination
• Precendents and Best Practices
• Support and Advice
• Innovatinve Models
• Advocacy groups
• .?

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Transport PPP or non PPP

• Intercity Bus Transport
• Denationalise routes? Competition?
• Roads etc
• State highways, Bridges
• Inland waterways
• waterways dredging, Jetties
• Bulk cargo movement
• Railways initiatives
• Connecting Links,
• RLDA, Logistics Park
• Airport
• group of airstrips / Merchant airport

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Urban PPP or non PPP

• Cities
• Solid waste management
• Bus terminals Capture Bus Terminal value
• Parks-cum-commercial centres
• Urban redensification
• Public places renewal
• Museums and Libraries
• Convention Centres, even small
• Municipal e-Governance
• Others
• Urban Public Transport
• Traffic corridor publicly funded
• Rolling stock on PPP

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Power PPP or non PPP

• Power Generation
• Price discovery
• Land
• Water
• Fuel linkage
• Transmission lines
• Align with Powergrid, RLDCs
• Distribution franchises
• Urban feeders
• Rural feeders? Jyotirgram

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Industries PPP or non PPP

• Industrial Parks in PPP
• Remote sensing maps
• Fallow land
• Proximity to transport rail, road
• Water availability
• Power grid availability
• Industrial Water Supply schemes
• Technical Education
• ITI s
• Polytechnics
• Focus on employable skill training

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Tourism PPP or non PPP

• Room supply
• Hotel running -
• PWD IBs and Resthouses- Wayside amenities on
  roads Irrigation Resthouses Forest Resthouses
• Other Rest Houses
• Tourism circuits
• Transport connectivity for all circuits
• Guides professional and goodwill guides

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What else, Practitioners?

• Agricultural cold chain infrastructure
• Agricultural farms Sheep and Goat farms
• Social Infrastructure PPPs
• Health
• Education
• Higher education
• Social safety nets
• Logistics

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Main responsibilities of State Government

• Project conceptualization
• Selection of consultants advisors Project
  Preparation
• Selection of Contractor/concessionaire- Bid
  process management
• Construction of project in time- Contract
  management
• SLAs adhered to- ongoing contract administration

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Desirables

• Introduce supply competition wherever possible
• Quick decision making leading to outcomes
• Governments morphing from supplier to procurer
• Talent skill shortage supply of unemployable
  people what can you do about it in your state?

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Way ahead

• How can we increase competition levels in supply?
• MoU route or SPV route not desirable at all
• Finance Ministers list of issues
• Capacity building
• Project Pipeline
• Enabling environment
• Innovative Financing
• How about Political will to deliver outcomes? You
  can help generate it
• Delivery vs defendability?
• Bias for action

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Thank you