PPP model for urban transport system

By Our Special Correspondent

New Delhi

June 27: Emulating the Hyderabad model, the government has decided to ask the states to go in for the public-private partnership (PPP) route to build all upcoming rapid-urban mass transport system.

Currently, these are being built by joint venture (JV) companies owned by the Centre and the concerned state on a 50:50 partnership basis.

The decision to this effect was taken by the committee on infrastructure headed by Prime Minister Manmohan Singh in April, but was withheld and not communicated to the states to see to it that the second Kolkata Metro Project got the clearance of the Union Cabinet, sources in the government said, adding, now since the Kolkata project was cleared under the JV route earlier this month, the Planning Commission deputy chairman, Montek Singh Ahluwalia, will soon communicate the decision to the finance ministry and the states.

The Delhi Metro is being constructed and operated by the JV company Delhi Metro Rail Corporation (DMRC) and given its success, the same model was replicated in Bengaluru. But later, at the operation level, the issue of ownership of the company became a big hurdle in smooth functioning.

In case of Delhi, because of the special status in terms of budgetary allocations, in which 90 per cent is Central share, the issues of ownership did not affect its performance. But when the Bengaluru project was brought to the implementation level, there were hiccups because of equal command positions of the Centre and the state.

Under the new plan, the Centre proposes that it is ready to give its share of 50 per cent of the project cost in aid, but it is asking state governments to own the project and implement them under PPP route, as the Hyderabad Metro is being built.