Public Private Parternership in Urban Infrastructure Development

REPORT

PUBLIC PRIVATE PARTNERSHIP

IN

URBAN INFRASTRUCTURE DEVELOPMENT

 INTRODUCTION:-

Indian development planning started with a strategy to bring the marginalized groups in to the mainstream. There were several strategies like the growth with justice, reduce poverty etc. followed in each five year plan to achieve a balanced development. But the Economic liberalization followed in the year1991 had brought several changes in the structure of the economy. It was noticed before the 11th plan that there were several divides that were making the society vertically and horizontally divided. Therefore, the eleventh plan has followed a very innovative strategy of bringing these marginalized sections into the development process. The strategy was considered and declared as "Towards a faster Inclusive Growth". This is different from earlier ones. India is a typical country known for its diversity and pluralism. Therefore, any strategy to bring inclusion will have far reaching implications for the traditions and structures of the country. The issue of caste and the related problems of inequality, discrimination, regional imbalances etc. are considered as impediments for inclusive growth.

 WHAT IS INCLUSIVE GROWTH !

Inclusive growth implies an equitable allocation of resources with benefits accruing to every section of society. It is not focus only any one sector. But inclusive growth focuses the entire sector.

* Growth should be in every sector of the society.....

* Benefit should be distributed equally among all the sectors.....

* Resources should also be equally distributed.....

There are many factors for inclusive growth. public private partnership (ppp) or (p3) is also one of the key factor for the inclusive growth.

 INDIAN INFRASTRUCTURE:-

During 2007-08 India's GDP grew by 9.0%. In the previous four years also

Economy grew at 9%. The Indian economy is expected to sustain this growth rate of 8 to 9% for the next five years up to 2012. The strong population growth in India and its booming economy generates enormous pressures to modernize and expand India's infrastructure. The creation of world class infrastructure would require large investments in addressing the deficit in quality and quantity. More than USD 475 billion worth of investment is to flow into India's infrastructure by 2012. In the next five years, infrastructure policies of India are expected to place emphasis on power, telecommunication, transportation and irrigation. Modernization of highways and railways, and development of civil aviation, irrigation systems, telecommunication systems, power grids and ports are among the top national priorities due to their influence in creating multiplier economic impacts. In addition to that, investments in tourism infrastructure, urban infrastructure, rural infrastructure, especially in water and sanitation infrastructure are being planned. This makes the total infrastructure investments in the period 2007-2008 to 2011-12 is about US$475 billion. Private sector's involvement with the public sector is inadequate to meet the huge challenge of modernizing and development of infrastructure in India. The government has established the Indian Infrastructure Finance Company (IIFC) and formulated flexible schemes to support PPPs in order to make the private sector to be a partner of the national development agenda.

India is the second fastest growing and the fourth largest1 economy of the world, India continues to face large gaps in the demand and supply of essential social and economic infrastructure and services. Rapidly growing economy, increased industrial activity, population pressure, and all-round economic and social development have led to greater demand for better quality and coverage of water and sanitation services, sewerage and drainage systems, solid-waste management, roads and seaports, and power supply. Increased demand has put the existing infrastructure under tremendous pressure and far problem its supply.

* WATER:-

In India 90% of the urban population has access to potable water supply, the actual availability of water in the cities is only 5-6 hours a day. Less than 60% of the households have sanitation and less than half have tap water on their premises. About 40 million people are estimated to be living in slums. Poor urban development is not only undermining the quality of life for India's urban citizens but also constraining local and national growth. As much as 70% of irrigation

and 80% of domestic water requirement is met from groundwater, which has signify disorderly and exhausting water table.

* POWER:-

Over 40% of India's population, mostly rural, does not have access to electricity. Despite the increase in installed generation capacity, shortages in normal and peak energy demand have been