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The Economic Times Infra Focus Summit


December 2013


New Delhi, India


The Economic Times Infra Focus Summit was recently conducted in New Delhi with active participation of key Indian infrastructure companies and industry stalwarts to share strategies to effectively plan and deliver infrastructure.

At the summit, Mr. Himanshu Sharma, Vice President Strategy & Planning, OIA was appointed as one of the panelists to discuss crucial points in the infrastructure sector along with a special emphasis on Public Private Partnership (PPP).

The summit was graced by the presence of key influential guest speakers such as Shri. Kamal Nath - Minister of Urban Development, Government of India and Mr. GajendraHaldea , Advisor(Infrastructure), Planning Commission along with key industry professionals from varied organizations such as L&T Infra, SREI and Rolta India to name a few.

In the panel discussion, Mr. Sharma spoke about the importance of Public Private Partnership and its impact on the infra sector as a whole. He mentioned that many projects in India have been executed under PPP model and have shown great capabilities in executing large projects in domestic and global market and lot of potential remains to target. However, many projects are stranded due to various financial and governance related issues along with few sectors such as infra sectors like roads, health, education & defense in which this concept is still struggling for success. In the PPP, the 3rd P i.e. partnership has great significance, in fact it is key of PPP's success. But adding to this, the partnership objective cannot be achieved unless both P s complement & relate to each other.

Mr. Sharma highlighted few key points which showed the importance of PPP in the Indian Infra Sector scenario, he mentioned that only 5 states viz. Gujarat, MP, Karnataka, Maharashtra and AP contribute 58% share of PPP in India and AP was the only state to enact infrastructure developing act in 2001.

The GOI's 12th year plan shows that 50% spending on infra projects will be met by private sectors along with INR 40,892 billion expenditure which is expected in 12th FYP with a key focus in potential sectors such as Mini Airports, Higher Education Research, Skill Development Opening upgraded ITI in every block of country, Affordable Housing, IT Centers in all block & towns in the domestic market.

Few issues related to the rigid working of PPP were identified which included Regulatory environment, Lack of information, Project development Lack of institutional capacity and Financing availability.

On a concluding note, Mr. Sharmasaid that the Government's support is needed to show the full success of PPP initiatives and at some stage it has to own with complete responsibility and there is a great potential in domestic and global market where Government can allow private sector to play greater role and to compete at global level.

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