Pranab asks states to expedite implementation of aided projects

Finance minister Pranab Mukherjee today asked states to expedite implementation of externally- aided projects so that the benefits of development could reach the poor and the country's image is enhanced abroad.

"(An)...area of primary concern is a slow progress of externally-aided projects. Effective implementation of these projects not only benefits the areas of projects’ locations, but also enhances our image abroad and with the multilateral financial agencies," he said at a conference of state finance secretaries.

Several multilateral lending agencies like the World Bank and the Asian Development Bank (ADB) have been stressing on a speedier implementation of the aided-projects. India is estimated to have paid over Rs700 crore as commitment charges to such agencies during the five-year period ending 2008-09.

The finance minister also asked the states to prepare the necessary groundwork for implementation of infrastructure projects in the Public Private Partnership (PPP) mode.

"There is need to create an enabling environment by way of a suitable policy framework and create a shelf of PPP projects which could be taken up for financing".

The state governments, he said, should consider the PPP model for implementing various infrastructure projects.