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For better infrastructure
The cornerstone of Indian economic development has been ‘mixed economy’ with the objective of evolving a socialistic pattern of society. Private initiatives for growth and progress came as a post-script to this approach.
In this process, foodgrain production and core industries were the major concerns, initially.
The role of infrastructure in development came to the forefront only in recent days. Again, the Public-Private Participation (PPP) model got its due as a result of the push from the private sector, for accelerating growth.
The establishment of the National Building Construction Corporation (NBCC) can be considered the forerunner in setting up government agencies for carrying out construction activities by the State.
The first steps towards infrastructure development were taken with the setting up of Hindustan Shipyard, Hindustan Aeronautics Ltd., HMT and similar companies in the public sector.
Design and development of these core sectors rested solely with the Central government, whereas building of roads, irrigation facilities and city centric mass transport facilities were within the realm of the State government through its Public Works Department.
It was realised later that the ability of the government departments to execute and maintain large infrastructure projects need to be supplemented by Special Purpose Vehicles (SPVs) and this led to the formation of the highway authority, road development authority and so on.
The PPP model has been accepted as a practical system when very large projects involving substantial funds are taken up. The PPP, however, is more a professional management concept. It does not compromise on procedures in identifying projects, selecting of consultants and contractors, inviting of quotations, supervising the execution of the projects and so on.
Under the PPP model, the relevance of government agencies and corporations disappears totally.
All activities are to be transparent and competitive in a PPP model. No preference of any sort can be shown to any agency. Government-sponsored corporations are outmoded today. They may even become irrelevant tomorrow, and need to be altogether eliminated.
K. SUKUMARAN
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