Government should lay emphasis on PPP to build infrastructure: Assocham

NEW DELHI: The Centre is able to spend less than 15 per cent of its entire expenditure budget on creating capital assets, an Assocham study has said while suggesting the government lay emphasis on PPP mode to build infrastructure such as roads, ports and airports.

"Of the total expenditure of Rs 14.90 lakh crore budgeted for the current financial year, only Rs 2.04 lakh crore would be spent on building the capital assets," the chamber said in its study.

It said to revive the country's economy, there is an urgent need to enhance basic infrastructure as otherwise manufacturing, services and the social sectors could suffer.

"The only option left is to go in aggressively for the PPP model of development for which a greater clarity is required in terms of assuring transparency, reasonable return to investors and a fair deal to the users of infrastructure like highways, airports," the study said.

It said along with roads, ports and railways, Public-Private-Partnership (PPP) mode projects should be further explored in sectors like education and healthcare.

"The government at present needs to focus on PPP capacity building," it added.