This topic refuses to die a natural death. So let me have a go at it again with the risk of repetition.
The title " PPP or else" that Kartic Sir wrote is very appropriate. Given our inefficient Tax/GDP ratio and extent of Fiscal deficit, if we really want economy to grow at our projected GDP growth, PPP is the only alternative left for boosting Infrastructure investment. And PPP doesn't mean we no longer have Govt investment. It only supplements govt investment.
"PPP or else ..." we will have either insufficient infrastructure investment or high inflation due to excess govt borrowings.
One good deal or one bad deal should not affect govt policy on PPP in general. We perhaps had a bad deal in Centaur Hotel and VSNL, but that doesn't mean we stop doing PSU disinvestment.
It's better to have a very sugar coated deal than have no deal. And who really decides whether the deal is good or bad? Until Mr Raju confessed to Accounting fraud, it was a great deal. Suddenly, it has become a stinky deal.
What we should be debating/discussing is what aspect of the Hyderabad Metro deal makes it stinky? No one seems to be addressing that. What could have been done in Hyderabad Metro project which could have made it better? That discussion would have been of immense value to all. Unfortunately, it seems none of us have a great deal of information about that. All that we keep saying is that Mr Sreedharan was not in favour of the contract. But is there sufficient reasoning given anywhere?
We may have a political scam because of Land allotment! Is there any basis to that or is it just a conjecture arrived at given our 'glorious' record on scams? Should land allotment clause be removed from Metro contracts? And why? We have had thousand scams unearthed in Defence Procurement. Do we stop buying arms and ammunication?
It is a learning curve that we may have to go through. True, some of our folks will earn money out of this policy. But such people will earn money out of anything. Govt may initially vacillate between very sugar coated deals to very bitter deals, until they gain enough insight and learn to strike a good balance. PPP has been very succesful in other sectors like Highways in India. We can draw lessons and move on. The work of any project begins with awarding of the contract. Doesn't end at that.
The title " PPP or else" that Kartic Sir wrote is very appropriate. Given our inefficient Tax/GDP ratio and extent of Fiscal deficit, if we really want economy to grow at our projected GDP growth, PPP is the only alternative left for boosting Infrastructure investment. And PPP doesn't mean we no longer have Govt investment. It only supplements govt investment.
"PPP or else ..." we will have either insufficient infrastructure investment or high inflation due to excess govt borrowings.
One good deal or one bad deal should not affect govt policy on PPP in general. We perhaps had a bad deal in Centaur Hotel and VSNL, but that doesn't mean we stop doing PSU disinvestment.
It's better to have a very sugar coated deal than have no deal. And who really decides whether the deal is good or bad? Until Mr Raju confessed to Accounting fraud, it was a great deal. Suddenly, it has become a stinky deal.
What we should be debating/discussing is what aspect of the Hyderabad Metro deal makes it stinky? No one seems to be addressing that. What could have been done in Hyderabad Metro project which could have made it better? That discussion would have been of immense value to all. Unfortunately, it seems none of us have a great deal of information about that. All that we keep saying is that Mr Sreedharan was not in favour of the contract. But is there sufficient reasoning given anywhere?
We may have a political scam because of Land allotment! Is there any basis to that or is it just a conjecture arrived at given our 'glorious' record on scams? Should land allotment clause be removed from Metro contracts? And why? We have had thousand scams unearthed in Defence Procurement. Do we stop buying arms and ammunication?
It is a learning curve that we may have to go through. True, some of our folks will earn money out of this policy. But such people will earn money out of anything. Govt may initially vacillate between very sugar coated deals to very bitter deals, until they gain enough insight and learn to strike a good balance. PPP has been very succesful in other sectors like Highways in India. We can draw lessons and move on. The work of any project begins with awarding of the contract. Doesn't end at that.
