Compendium of PPP Projects in Infrastructure
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Government of India Published by Secretariat for PPP & Infrastructure Planning Commission, Government of India Yojana Bhawan, Parliament Street New Delhi - 110001 Compendium PPP Projects in Infrastructure Government of India Compendium of PPP Projects in Infrastructure Published by PPP & Infrastructure Division Planning Commission, Government of India Yojana Bhawan, Parliament Street New Delhi – 110 001 www.infrastructure.gov.in March 2014 Contents Preface 1. Introduction 5 2. Policy initiatives to promote private participation 6 3. Cabinet Committee on Investment (CCI) 6 4. Public Private Partnership Appraisal Committee (PPPAC) 7 5. India Infrastructure Finance Company Limited (IIFCL) 8 6. Empowered Committee / Institution (EC/EI) 9 7. Viability Gap Funding (VGF) Scheme 9 8. Advisory Services 9 9. Model Documents 9 10. Guidelines and Manuals 10 11. Reports 11 12. Status of PPP Projects in Central Sector 12 13. Status of PPP Projects in State Sector 13 Boxes Box 1: Global Ranking in PPP 5 Box 2: India Front-Runner in the PPP Race: ADB 6 Box 3: Hyderabad Metro Rail Project 7 Box 4: Infrastructure Debt Fund 8 Box 5: Model Concession Agreements for PPP Projects 10 Box 6: Model Bidding Documents for PPP Projects 10 Box 7: Guidelines and Manuals 11 Box 8: Reports 11 List of Annexes Annex- I: Status of PPP Projects in Central and State Sectors 15 Annex- II: Central Sector: Completed PPP Projects 16 Annex- III: Central Sector: PPP Projects under Implementation 20 Annex- IV: Central Sector: PPP Projects in Pipeline 27 Annex- V: State Sector: Completed PPP Projects 30 Annex- VI: State Sector: PPP Projects under Implementation 54 Annex- VII: State Sector: PPP projects in Pipeline 79 Secretariat for PPP & Infrastructure Preface The Twelfth Five Year Plan recognises that are financially viable, PPPs are increasingly adequate investment in the development of becoming the preferred mode of project infrastructure is a prerequisite for higher implementation, especially in sectors such as growth. Accordingly, an investment ofRs. highways, airports, ports, railways and urban 55,74,663 crore has been projected during the transit systems. Twelfth Plan, which is more than twice the investment of Rs. 24,24,277 crore anticipated A number of initiatives taken during the during the Eleventh Plan. The Twelfth Plan Tenth and Eleventh Plans have resulted in the also projects a share of 48 per cent of private award of a large number of PPP concessions investment against 36.61 per cent anticipated in highways and ports. In the airport sector, in the Eleventh Plan. This ambitious target for metro airports at Bangalore, Hyderabad, Delhi investment in infrastructure is constrained by and Mumbai are being developed and operated the limited budgetary allocations, especially in by private entities through PPP concessions. view of the renewed emphasis on social sectors. In railways, concessions for the operation of As a result, the role of private investment in container trains have been awarded to a number funding infrastructure projects assumes greater of competing entities. The progress made so significance in delivering the Twelfth Plan far seems to suggest that India now stands at targets. the forefront in attracting private investment in infrastructure as compared to other countries. The investment strategy of the Government primarily relies on promoting investment In the State sector also, several concessions in through a combination of public investment, roads, ports and urban infrastructure have been private participation through Public Private awarded on PPP mode. Partnerships (PPPs) and stand-alone private According to World Bank data on Private investment. Since private investment would not Participation in Infrastructure, India has been be sustainable in financially unviable projects the top recipient of Private Participation in in rural infrastructure, irrigation and water Infrastructure (PPI) activity during 2008-12. resources management, inland waterways and in India alone accounted for almost half of the the economically or situationally disadvantaged investment in new PPI projects in developing regions, they would continue to be funded countries during 2011. A World Bank Report by public investment. For projects which maintained that India remained the largest market for PPI in the developing world. Information on the status of PPP projects has been compiled as on March 31, 2013 in the three categories viz. completed projects, projects under implementation and projects in the pipeline. While the completed and under implementation projects signify the scale of success of the PPP programme, information on a large number of projects in pipeline suggests opportunities for investors in various sectors across the country. The report is being published with a view to documenting the present status of PPP initiatives and for disseminating information aimed at further acceleration in the award of PPP concessions for development of infrastructure. (Gajendra Haldea) Adviser to Deputy Chairman March 14, 2014 Planning Commission 4 Compendium Compendium of PPP Projects in Infrastructure Introduction management, inland waterways, and in the economically or situationally disadvantaged 1. Inadequate infrastructure has been regions would have to come from the public recognised as a major constraint on rapid sector. It is, therefore, essential to rely on economic growth. The Eleventh Five Year Plan private participation for funding the financially had, therefore, emphasised the need for massive viable infrastructure projects in order to bridge expansion in investment in infrastructure the financing gap. based on a combination of public and private investments. Box 1 Global Ranking in PPP 2. The Twelfth Five Year Plan continues the According to World Bank data on Private thrust on accelerating the pace of investment Participation in Infrastructure, the aggregate in infrastructure as this is critical for sustaining investment commitment in PPI projects and accelerating the growth. Accordingly, was highest in India during 2008-12. A the Twelfth Five Year Plan has projected World Bank Report maintained that India an investment of Rs. 55,74,663 crore in remained the largest market for PPI in the infrastructure during the Plan period (2012- developing world. In the South Asian region, 17), which is more than twice the investment India attracted over 90 per cent of regional of Rs. 24,24,277 crore anticipated during the investment. Eleventh Plan (2007-12). The Twelfth Plan also projects a share of 48 per cent of private investment against 36.61 per cent anticipated in 4. During the Tenth and Eleventh Plans, the Eleventh Plan. considerable investment has been made in infrastructure by way of private participation. 3. Traditionally, infrastructure has been Typically, the mode of investment has been funded through public investment. However, through Public Private Partnerships (PPP) in view of scarcity of budgetary resources involving investment by private entities through and lack of capacity within the government concession agreements which lay down the to implement these ambitious programmes, performance obligations to be discharged by the the strategy of the government relies concessionaire. PPPs are increasingly becoming significantly on promoting investment through the preferred mode for construction and a combination of public investment and operation of commercially viable infrastructure private participation. A substantial part of the projects in sectors such as highways, airports, investment in infrastructure sectors such as rural ports, railways and urban transit systems. Box infrastructure, irrigation and water resources 1 indicates India’s success and global ranking PPP Projects in Infrastructure 5 in attracting private investment, while Box 2 National Highways Authority of India (NHAI) reflects the quality and sophistication of the awarded a large number of BOT and Annuity policy and regulatory framework. Concessions for construction and operation of national highways. In the port sector, the areas Box 2 identified for private participation included India Front-Runner in the PPP Race: ADB leasing of port assets and construction and According to a study by the Economic operation of terminals. In the airport sector, four Intelligence Unit of the Economist metro airports at Bangalore, Hyderabad, Delhi commissioned by Asian Development Bank and Mumbai are being developed and operated (ADB), while UK and Australia have been by private entities through PPP concessions. categorized as mature economies, India PPP initiatives have also undertaken to develop is positioned in the league of developed metro rail systems (Box 3). economies like Republic of Korea and Japan on implementation of PPP projects Policy initiatives to promote private for infrastructure development. India has participation outscored China and Japan to rank second on PPP projects performance among the Asian 6. Some of the key initiatives of the Central nations and fourth in the Asia-Pacific nations. Government aimed at creating an enabling As per the Report, PPP development in India environment for promoting private participation has been driven by strong political will and advances in public capacity and processes. in infrastructure are outlined below: The Report states that PPP projects have a Cabinet Committee on Investment (CCI) huge level of overall acceptance and use in India. It states that government agencies have 7. In order to provide enabling policy a relatively high level of proficiency