Decision will be taken in a few weeks, says Jaipal Reddy
HYDERABAD: The Centre is considering an increase in grants through viability-gap funding for upcoming metro rail projects from 20 per cent to 30 per cent.
Urban Development Minister S. Jaipal Reddy told reporters here on Thursday, after delivering his address at a workshop on ‘Mainstreaming Public-Private Partnerships (PPPs) in the Urban Sector’ that a decision would be taken in a few weeks.
Once the Union Cabinet approved it, the Central grant to the Rs. 9,200-crore Hyderabad Metro Rail project would increase to over Rs. 3,000 crore. He said Tirupati would be included whenever the Centre decided to expand the list of 63 cities under Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
Allowing private participation in water supply projects was not tantamount to privatising it but was only aimed at leveraging the efficiency and capital of private sector.
Human face
Chief Minister Y.S. Rajasekhara Reddy said that as long as the Government had a human face, the services could be provided through PPP in an efficient manner. Any reforms should benefit the common man, especially in the wake of burgeoning urban population, he said. Kunio Senga, director-general, South Asia Department, Asian Development Bank, said that the Bank was keen to accelerate urban infrastructure projects in India.
Arvind Mayaram, joint secretary, Department of Economic Affairs, Ministry of Finance, described as a myth the perception that bringing in private sector in water supply would lead to increase in the cost of the services.
The PPP would be based on certain performance standards and it was for the Government to fix the tariff.
Jacqueline B. Wilson, Director, Governance and Institutional Development Division, and M. Rajamani, joint secretary, Ministry of Urban Development also spoke.
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