Keeping in view the
increasing demand for infrastructure and
services in urban areas and the fact that public
sector outlays are becoming inadequate the State
Govt. has formulated a policy guideline for
private sector participation for infrastructure
development.
The State Government
envisages to provide a healthy and sustainable
living environment to the people of the State,
with a focus on the poor and the socially
disadvantaged. The provision of infrastructure
of different kinds would play a key role in
achieving the above vision. It has been amply
brought out in various studies and reports that
West Bengal needs to focus on development of
various infrastructures, especially in the
context of the accelerated industrial growth
envisioned for the State. Therefore, provision
of infrastructure, both physical and social, is
a sine qua non for a healthy progress of the
State. Needless to mention that state budgetary
support alone cannot be expected to match with
the requirement of infrastructure development.
This is a countrywide phenomenon. According to
the India Infrastructure Report (1996), the
Ninth Plan could provide Rs.120 billion only for
urban infrastructure development against an
estimated requirement of about Rs.1400 billion.
The Rs.l600-crore Calcutta Megacity Programme,
sponsored by Government of India (Gol), has been
facing fund crunch owing to inadequate flow of
fund from Government of India (Gol). The Master
Plan for Traffic and Transportation for KMA,
prepared by #KMDA only recently, has estimated
an investment requirement of around Rs. 16000
crores over a period of 25 years from 2001. All
these point to the need for alternative
financing sources, including mobilization of
private sector investment in infrastructure
development.
Given the increasing gap between demand for and
supply of infrastructure, there is a need for
providing an increasing allocation of investment
to development of infrastructure. In the context
of budgetary constraints, it is imperative for
the State Government to look for alternative
sources of financing. Apart from institutional
finances, i.e., loan from domestic financial
institutions such as HUDCO, LICI, ICICI etc. and
also finances from international bodies like the
World Bank, the ADB etc., the State Government
is keen to mobilize private sector investment in
infrastructure development.
In a limited way, the West Bengal Government has
already attempted to enlist private sector
participation in infrastructure development. The
State Government has enacted the WB Maritime
Board Act, which provides for securing private
sector participation in development of Ports. In
the Housing and Commercial development sector, a
number of projects, such as Udayan - The
Condoville; Hiland Park; and City Centre, have
been taken up with private sector participation.
The Leather Complex project is being implemented
by the Commerce & Industries Department of
Government of West Bengal (Government of West Bengal ) on Build,
Operate and Transfer (BOT) basis through a
private sector entity. The Second Vivekananda
Bridge is being implemented by the Ministry of
Road Transport & Highways (MORTH), Government of
India and the Public Works Department of
Government of West Bengal on BOT basis through
private sector participation.
Nevertheless, the experience of the State
Government in working with private sector for
infrastructure development has been rather
limited. For a wider involvement of private
sector participation in infrastructure
development, it is necessary to instill
confidence in the minds of prospective private
sector investors and also to streamline the
process of selection of private partners. To be
able to achieve this, it is imperative to have a
comprehensive policy on private sector
participation in infrastructure development or,
in other words, a Policy on Public Private
Partnership (PPP).
The State Government has
initiated a policy of PPP on behalf of the Urban
Development Department. The State Government is
also examining the scope of strengthening the
policy statement to make it more proactive and
supportive towards facilitating growth in
infrastructure. A number of initiatives with
private sector participation are at various
stages of progress: The Kolkata Metropolitan
Development Authority have successfully entered
into joint ventures with respect to the
residential cum commercial projects namely, City
Centre at Bidhannagar and Highland Park at
Bagajatin. KMDA has also entered into Private
partnership in creation of Kolkata West
International City. KMDA has progressed in
developing a Stadium-based-Commercial Complex at
Rajdanga, Kolkata Logistic Hub at Kona and in
beautification of Sector-V at Bidhannagar with
private participation. Several other schemes to
be executed with PPP are at the planning stage.
Siliguri Jalpaiguri Development Authority has
initiated action in construction of a New
Township near North Bengal Medical College and
an Amusement Park at Dagapur. with private
sector participation. ADDA has entered into
joint ventures in constructing City Centre at
Durgapur and the new Asansol township. Burdwan
Development Authority have taken up works of
residential and commercial building at Jail
Complex and Court Complex, bus-cum-truck
terminal at Nabhabhat, Bus-cum-truck terminal at
Alisha and Satellite township at Goda. BDA has
also proposed setting up a health city with
private participation. The Haldia Development
Authority has entered into joint ventures to set
up a Food Park complex and an Integrated Waste
Management Complex.
