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Achievements in the Year 2018-19

PPP for Development of Eco-Tourism Resorts on Islands

NITI Aayog is spearheading the holistic development of islands in India and in this regard it has envisaged to develop sustainable eco-tourism projects in select islands of Andaman & Nicobar and Lakshadweep Union Territories. Based on the inputs received in the Investors Conference on Holistic Island Development on 10 August 2018, a Draft Model Concession Agreement (“MCA”) for development and operation of island resort and supporting infrastructure has been formulated. Moreover, nine eco-tourism resort projects have been identified out of which four are ready for launch. Going forward several other projects are expected to be taken up for implementation through this route. The framework would also be useful for development of other eco-tourism projects.

PPP for Electric Buses

In an attempt to shift from fossil fuels to cleaner energy forms and to make public transportation more affordable and efficient, a MCA has been drafted to engage private sector investors to supply and operate electric buses in cities. A stakeholders meeting was organized in October 2018, at NITI Aayog which laid the contours of the project. The proposed OPEX-model would enable State Transport Bodies to introduce the much-awaited fleet of e-buses in the cities without incurring large capital investments and creation of maintenance infrastructure including undertaking the O&M of the fleet. The model creates a win-win situation for both the private entities as well as the state authorities.  

 

PPP for Integrated-Micro-Irrigation

 

Concept Note for setting up integrated micro-irrigation system in India through PPP mode has been prepared and shared with all the State Governments. The project would have two key components ‘common infrastructure’ and ‘on-farm distribution’. A MCA is proposed to be drafted and a pilot project has been identified for implementation in the State of Haryana under the ongoing Development Support Services for States (“DSSS”) initiative of NITI Aayog.

 

PPP for Ropeways Development to Increase Accessibility

 

Passenger ropeways have garnered renewed interest in recent years. Many state governments have expressed interest to install ropeway systems as it will facilitate development of tourist spots and improve connectivity to inaccessible terrain within a city or locality. Globally, ropeways are also being implemented to provide urban transport.  In view of the importance of ropeways, NITI Aayog prepared a draft Model Concession Agreement to standardize the guidelines for facilitating private sector participation to implement ropeway projects under a suitable design, built, finance, operate & transfer (DBFOT) PPP framework. A stakeholder meet was held in June 2018. Further, in order to delve deeper into O&M and the construction standards to be adopted, various follow-up meetings have been organized with the stakeholders with the aim of ropeway projects meeting global benchmarks in operations and safety. It also aims at bringing in state of the art technology enabling Indian manufacturers to upgrade their facilities, equipment for domestic as well as global markets.

 

Workshop on Alternate Financing

 

To abate the burden on the banking system to fund large ticket size infrastructure projects, NITI Aayog has been exploring avenues and newer modes for further deepening alternative sources of financing for infrastructure (other than commercial banks) in India. In this regard, a round-table on Alternative Sources of Financing Infrastructure in India was organised in April 2018 at NITI Aayog.

 

Report on Potential Sectors for Implementing ‘Asset Recycling’ Model in India

 

Considering the importance of private sector participation in infrastructure and need for the Government to raise finances from alternate sources, the Vertical prepared a report on opportunities for implementing brownfield PPP or asset recycling in India.  Asset-recycling is a PPP model which entails monetization of viable projects that have established stable revenue flows after being commissioned. Toll-Operate-Transfer (TOT) model implemented by National Highways Authority of India (NHAI) is one such successful case. Adoption of this model not only helps the government to free up funds for taking up new projects but also improve service levels through private sector participation in operation and maintenance of assets. The report highlights key sectors in which the Government can further explore asset recycling opportunities.

 

Capacity Building Initiative

 

Best Practices Collation – India Knowledge Hub Portal

 

A dedicated section on Public-Private Partnerships has been developed on NITI Aayog's India Knowledge portal. Eight case studies on PPP best practices have been uploaded on the portal so far. These include:

 

a) Karnataka PPP initiatives in which the functioning of the PPP cell of the Government of Karnataka and the State’s support for PPP projects have been examined;

 

b) PPP in Urban Rail Projects discusses the reasons for failure of the PPP framework in the case of Delhi Metro Airport Express Line and success of the Hyderabad Metro Rail Project;

 

c) Nagpur city Urban Water Supply examines the operation, maintenance & development PPP contract in the water supply and sanitation sector, along with the bidding process and its impact;

 

d) Development of Haryana Vidyut Prasaran Nigam Limited (HVPNL) electricity transmission infrastructure which elaborates the Design, Build, Finance, Operate and Transfer (DBFOT) PPP model adopted by HVPNL to facilitate electricity transmission;

 

e) Hybrid Annuity Model (HAM) highlights the key aspects of HAM which is used as an alternative to DBFOT models for projects where user charges are not sufficient for private investment;

 

f) Asset Recycling discusses the important aspects of asset recycling or reverse BOT PPP model;

 

g) Madhya Pradesh PPP initiatives looks into the various initiatives the government of Madhya Pradesh to promote development of infrastructure through PPP and also examines some prominent PPP projects undertaken by the State in various sectors; and

 

h) National Infrastructure Investment Fund (NIIF) elaborates on the setting up of NIIF as a PPP to support commercial infrastructure development.

 

Public Private Partnership Appraisal Unit (PPPAU)

 

During 2018-19 (up to September 2018), 13 Public Private Partnership (PPP) projects with a total cost of Rs.15942.85 Crore have been appraised by the PPPAU.  This includes 11 Central sector projects and 2 State sector projects.  The sector-wise distribution of the PPP projects appraised are given in Table 1 below:

 

Table 1: PPP Projects appraised in 2018-19 (Up to 20.9.2018)

Sl.No.

Project Appraised

No. of Projects

Total Cost

(Rs. in Crore)

A

Central Projects

1

Road

10

10517.40

2

AirPort*

                              1

                 -

 

Sub Total (A)

11

10517.40

B

State/UT Projects

1

Road

1

1336.45

2

Sea Port

1

4089.00

 

Sub Total (B)

2

5425.45

 

Grand Total (A+B)

13

15942.85

Apart from the projects of the Central Government, the PPPAU also appraises projects of States/UTs for Viability Gap Funding (VGF). During 2018-19 (up to September 2018), State projects involving an estimated investment of about Rs. 5425.45 Crore have been appraised whose details are given in Table 2 below:

 

Table 2: State-wise PPP Projects appraised for Grant of VGF in 2018-19 (Up to 20.9.2018)

Sl.No.

Project Appraised

No. of Projects

Total Project Cost

(Rs. in Crore)

1

Uttar Pradesh

1

1336.45

2

Kerala

1

4089.00

 

Total

2

5425.45

 

* The nature of the project is operation and maintenance and there was not any Capital  

   Expenditure envisaged.