After independence, Indian policy planners focused on public enterprise system as the mainstay of our economic reconstruction. We know that the Planning programme of Congress Government was to follow the socialist pattern and Soviet model was slightly modified to suit our requirements. The model continued with or without success and India had got used to it. As time rolled by, our planners at the helm of affairs realized that mixed economy needed more reformation and adaptation so as to suit the needs of the country. The population had increased, people had become more ambitious and there was demand for a better life. India somehow was not keeping pace of her development in line with the pace many more developing countries had reached especially in South East Asia. Thus focus was shifted to private enterprise and it began to thrive. Growth of private enterprise did two things. One was to expose the impotence of public enterprise and secondly, it also gave rise to various issues that had to be taken into account. Labour laws, social welfare of working class, nature and location of industry, land acquisition etc. were some of the issues of serious nature. This stage, too, has been crossed and now we are at the third stage in which Private-Public Partnership usually called PPP is gradually taking place of earlier modules.
Vijay Kelkar Committee constituted by the Government to examine and report on the PPP mode has now submitted its report to the Government, which while approving the role of PPP model, includes review of the model concession agreements, raising of funds through zero coupon bonds and setting up of independent sectoral regulators to make the model successful. It goes on to say that PPPs are an important policy instrument that will enable India to compress time in this journey towards economic growth and development. A successful and growing stream of PPPs in infrastructure will go a long way in accelerating the country’s development process. It also recommended major infrastructural development like construction of airports, railways, roads, dams etc. to be preferred under PPP.
Follow our WhatsApp channel