‘Cost viability is the main challenge for PPP projects in Karnataka’

Chief secretary SV Ranganath on Tuesday emphasised the need for ensuring the Public Private Partnership (PPP) projects are cost-effective and affordable for the common man, if the model has to script a success story in the country.

“Public-private partnership is the key, but how to improve it is to be ensured. The problem which India faces is the ‘Jugaad’ (locally-made motor vehicles that are used in small villages as a means of low cost transportation) influence. There is a need for debates and discussions with the people to tackle this influence in all PPP projects. If not discussed, things will go on as they are, but service to citizens will be compromised,” said Ranganath.

At a conference on ‘Public Private Partnership: Current Challenges and the Way Forward’ on Tuesday, organised by the All India Management Association (AIMA), he pointed out that debates and PPP are important in infrastructural projects. There have been mistakes in the past along with lack of foresight, but is a learning curve and things are gradually improving.

With regard to cost viability, Ranganath pointed out that any project should not burden the citizens. Citing the example of toll roads, he said that it is an issue which should be dealt with seriously. In case of water, he said that there were attempts in the past to hike the rates, but protests from all corners prevented the government from burdening the consumers. “While international standards need to be met, affordability and welfare of citizens is essential. In case of affordable housing projects, the government is unable to do anything independently. This is where the role of private players is required,” Ranganath said.

“Lack of PPP is affecting the GDP, as there are some grey areas to be filled. PPP is needed in social sector projects like agriculture, rural development, housing, education and health as they are very important,” he said.

Additional chief secretary and chairman of AIMA, K Jairaj said that some successful PPP stories in Karnataka include the Bengaluru International Airport, road works and the Nagarjuna power project in Mangalore.