Bhubaneswar: To provide a better socio-economic life to the public and attract more private sector investment, the State Government has notified a robust Public Private Partnership (PPP) Policy.
Vishal Kumar Dev, Principal Secretary Finance, an investment friendly mandarin, after the approval of the State Cabinet, has notified the Policy.
Detailed Policy Framework has been notified by the Department of Finance, which said that the PPP approach is best suited for the infrastructure sector as it supplements scarce public resources, creates a more competitive environment and helps to improve efficiencies and reduce costs.
The State Government had formulated the Industrial Policy 2015 and Public Private Partnership (PPP) Policy 2007, which stressed on the role of private sector as a driving force of growth and development in the State.
There have been significant changes in the PPP scenario in the country since with formulation and amendments of various Central Government policies and guidelines. Public Private Partnership (PPP) Policy 2023 aims at reinforcing and further accelerating the growth of PPPs in the State and helping the State to adapt to changes in the PPP ecosystem.
The emphasis of the policy would be on acknowledging and appreciating the crucial part that Public-Private Partnerships (PPPs) play in advancing infrastructure development and asset maintenance.
Infrastructure investments have a significant economic impact based on the policy climate in which they are produced. Since there is such a great need for infrastructure development, the State intends to take steps to make the most of the public sector resources through PPPs for the creation and operation of infrastructure in the State.
Projects with capital expenditure up to Rs. 10 crore will be approved by Director PPP, provided that these projects do not require any assistance from the Odisha Infrastructure Development Fund (OIDF) or from the State Viability Gap Funding (VGF).
For its proper monitoring, the Empowered Committee on Infrastructure (ECI) headed by the Chief Secretary has been formed. The ECI will approve the PPP projects from Rs. 10 crore up to Rs. 500 crore and for proposals more than Rs. 500 crore, the ECI will make its recommendations to HLCA, headed by the Chief Minister, for approval.
As per the Policy, a District PPP committee will be established at the district level and will be headed by the District Collector to coordinate and facilitate the implementation of infrastructure projects on PPP route.
Focus will be given to mining areas. The existing funding avenues and institutional structures such as District Mineral Foundation (DMF) and Odisha Mineral Bearing Areas Development Corporation (OMBADC) will be leveraged for improving infrastructure in the mining affected areas.
Viability Gap Funding (VGF) available under different schemes of the Central Government will also be leveraged to attain viability of PPP projects. The State Government will provide the remaining portion of viability gap as emerged from the open bid to help the emergent infrastructure projects attain viability and get implemented.
The State Government has also extended the scope of OIDF, which can now be used for taking up technical and financial pre-feasibility and feasibility studies, preparation of reports and bid documents and any other activities that need to be undertaken prior to offering proposed infrastructure projects.
The Odisha Urban Infrastructure Development Fund (OUIDF) can also be utilized for this purpose.
