'Onus of infra development in states on Centre'
The onus lies primarily with the central government and not through the public-private partnership mode, says Jairam Ramesh.
By Agencies |
NEW DELHI: The onus of developing infrastructure in poorer and backward states, like the North-East, lies primarily with the central government and not through the public-private partnership mode, Minister of State for Commerce Jairam Ramesh said on Wednesday.
"To expect that PPP will have any takers in the North-East is the height of folly. There is simply no other option but for the central government to take on the primary responsibility for building this infrastructure," Ramesh said at the National Institute of Rural Development.
There may be niches where private resources can be mobilised but there is no alternative to the public provision of infrastructure in the poorer and backward states, an official release quoted him as saying.
He said like inclusive growth, PPP has also become "a mantra of sorts", seen as a panacea for infrastructure needs.
"To my mind, PPP means private funds for public projects and not public funds for private projects as many private sector companies seem to think," he said.
Emphasising that infrastructure holds the key for improving economic prospects of laggard states, Ramesh said new models for government involvement in infrastructure development are required.
"The public sector can take on the role of a venture capitalist, establish the infrastructure, trigger the economic activity and then exit. Government agencies will also need to be given the flexibility to enter into alliances with private companies for construction and management," he said.
He further said transfers of resources from the Centre to states is an important component of reducing inter-state disparities.
"To expect that PPP will have any takers in the North-East is the height of folly. There is simply no other option but for the central government to take on the primary responsibility for building this infrastructure," Ramesh said at the National Institute of Rural Development.
There may be niches where private resources can be mobilised but there is no alternative to the public provision of infrastructure in the poorer and backward states, an official release quoted him as saying.
He said like inclusive growth, PPP has also become "a mantra of sorts", seen as a panacea for infrastructure needs.
"To my mind, PPP means private funds for public projects and not public funds for private projects as many private sector companies seem to think," he said.
Emphasising that infrastructure holds the key for improving economic prospects of laggard states, Ramesh said new models for government involvement in infrastructure development are required.
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"The public sector can take on the role of a venture capitalist, establish the infrastructure, trigger the economic activity and then exit. Government agencies will also need to be given the flexibility to enter into alliances with private companies for construction and management," he said.
He further said transfers of resources from the Centre to states is an important component of reducing inter-state disparities.
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