26 September, 2020

Medium Scale Industry

For public-private success, the state has to do most of the spadework

Medium Scale Industry
There does not appear to be any breakthrough idea in getting the PPP system and institutions to work. The expectations bundle has shifted: the infrastructure sector is not asking for income tax holidays or excise duty sops. What we are saying is, get on with fixing the system that makes projects get done on time. There isn't a meeting of minds. There are too many roadblocks. In the private sector, we are putting our money, taking market and project risks; we expect the sovereign to sort out the mess that is in-house to the sovereign.

The private sector takes PPP projects extremely seriously. Otherwise, we would not have had these huge partnerships worth hundreds and thousands of crores in highway development. Take the Delhi, Mumbai airports or the Ultra Mega Power Projects (UMPP)—the private sector has responded with enthusiasm to projects put up in PPP. But delays plague projects that have had cheerleaders at the Centre. The UMPP is behind schedule; the National Highways Development Programme is four or five years behind schedule. Most...


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