Planning Comission seeks dedicated PPP cells

NEW DELHI: In a move aimed at combating the negative perceptions hanging over public-private partnership projects, the Planning Commission has asked key infrastructure ministries to set up dedicated cells within three months for better monitoring and enforcement of such ventures.

In a note sent last week to ministries associated with infrastructure development, the commission has suggested that every ministry engaged in PPP should deploy full-time staff on such cells and allocate sufficient budgetary resources for hiring experts to maintain a tight vigil over the outcome of these projects.

The suggestions are aimed at building a competent institutional capacity, so that concessionaires cannot “game the system, even to the extent of malfeasance”, the commission has said, indirectly referring to several audit reports that have blamed the government for crony capitalism in PPP projects.

“In particular, ministries such as power, railways, road transport and highways, shipping, civil aviation, human resource development and health should set up their respective PPP divisions by November 30,” the note said.

“The role and functions of these PPP divisions may be specified by ministries in consultation with the Planning Commission and the finance ministry.” While ministries have been asked to critically examine their selection and bidding procedures, the commission has suggested creation of a “standing group of experts” by the Cabinet Secretariat to resolve differences between the ministries.

It has also called for creating ‘credible’ concession agreements through inter-ministerial scrutiny and setting up a group to clear such pacts. However, in a meeting with Planning Commission Deputy Chairman Montek Singh Ahluwalia on Friday, several of these ministries have raised concerns over the commission’s suggestions.