‘Road sector bags maximum PPP projects in northern region’

December 19, 2011

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The road sector has bagged the maximum number of PPP projects in the northern region with 94 projects (66.7 per cent), followed by urban development with 28 projects (19.9 per cent), energy sector with seven projects (five per cent), tourism and education four projects each, healthcare three projects and one airport project, according to the CII report on “Public Private Partnership in northern region: An Analysis”. The report is based on data from PPP India as on June 2011 and the Planning Commission.

Northern states comprising Chandigarh, Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Rajasthan, Uttar Pradesh, Uttarakhand, and Delhi have 141 PPP projects in various stages of implementation with an estimated value of Rs 80,544 crore. The report also highlights the intra state variations in terms of PPP projects.Within the region,

Rajasthan leads with 41.2 per cent of the total projects in the region; followed by Punjab, 23.0 per cent; Uttar Pradesh, 12.2 per cent; Haryana, 9.5 per cent and Delhi, 8.1 per cent. In terms of value, the top five states are Uttar Pradesh 33.5 per cent of the total; followed by Rajasthan, 18.4 per cent; Haryana, 17.1 per cent; Delhi, 13.7 per cent and Punjab, 7.9 per cent.

As on June 2011, out of the total 748 PPP projects under implementation across the country, northern region accounts for only 18.8 per cent as against 31.0 per cent for western region and 36.2 per cent for southern region. In terms of value of the projects, the share of northern region is 21.3 per cent, whereas, southern and western regions account 40.2 per cent and 27.2 per cent respectively.

The report also highlights that PPPs in social infrastructure sectors like education and healthcare is quite good with region’s share at 40.8 per cent and 24.1 per cent respectively.

The region has attracted Rs 755 crore in the education sector and Rs 442 crore in healthcare sector respectively. In northern region, the report highlights, that BOT (Built-Operate-Transfer)-Toll model is the most popular PPP model (75 are BOT-Toll type out of 141 projects in the region) adopted by Central and state in 94 road sector projects, followed by BOT-Annuity in 11 and BOT in five projects.

In social sector projects, BOT (3) and DBFOT (Design-Build-Finance-Operate-Transfer) (2) model are preferred. In the urban development sphere, BOOT (Build- Own-Operate-Transfer) and BOT are the preferred models with six projects each. In the state sector, BOT — Toll is the preferred model with 47 projects followed by BOT in 16 projects followed by BOT-Annuity (11.3 per cent).

In terms of state agencies implementing PPP projects, Rajasthan has the largest number of projects at 50, followed by Punjab, 27 projects; Delhi, 9 projects.

Also, 57 projects worth Rs 6,289 crore have moved from construction or implementation phase to operational phase in the region.

Source: business-standard.com