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PURA Can Improve Rural Infrastructure With 2 pilot projects commissioned, Govt calls for EOI for second phase
Jul 19, 2012

Bangalore: Interactive session on “Provision of Urban Amenities in Rural Areas (PURA) Scheme in Public Private Partnership Framework” organized by CII opined that PURA can address development, infrastructure and employment issues of rural areas. Government officials and industry representatives who participated in the interactive session felt that the dream concept of Former President of India, Abdul Kalam, can transform the rural face of India.

 

Along with the mandatory projects designated by Ministry of Rural Development, the private partners can also take up commercial projects as add-on projects. So, Central and State Government agencies, local Grampanchayat communities, and private partners can work together to accelerate the growth of the rural areas through PURA, as per the speakers.

 

As the implementing agency in the PURA projects is a private entity, misappropriation, or wastage of resources can be eliminated, according to speakers. With the two pilot projects implemented successfully, participants evinced more interest in knowing more details and customizing the projects to the local needs. Government of India called for expression of interest for second phase till July 23.  

 

Mr Aroon Raman, Past Chairman, CII Karnataka, said, “The needs of villages drastically change from region to region and hence, there should be a kind of decentralization of PURA implementation mechanism.

 

Mr Rajesh Bhushan, Joint Secretary, Department of Rural Development, Ministry of Rural Development, Government of India, said, “As a business model, PURA leverages public funds with private capital and management for creation and maintenance of rural infrastructure. These schemes are focused on community development and not targeted towards individuals. Private developer will have flexibility in choosing PURA project area and revenue generating projects as add-ons. PURA is not a part of CSR and it is a clear business model.”

 

Mr Sanjiv Kumar, Principal Secretary, Rural Development & Panchayath Raj, Government of Karnataka, said, “Karavali development authority is doing something similar to PURA and because of it, coastal areas are well developed than other rural areas of the state. Special purpose vehicles are needed for visualizing this type of projects and till now these SPVs are confined only to tier 1 and 2 cities.”

 

Dr Shalini Rajaneesh, IAS, Secretary, Rural Development & Panyachath Raj, said, “ There is a 5,000 years old human settlement in Koppal near Hampi. But it takes 3 hours of trekking to go there. This is suitable project for PURA and there are many such opportunities in Karnataka. In rural areas, there are thousands of schools which are free after school hours. These can be used for HR skills development.”

 

Mr Rakesh Bangera, Director, Urban Practice, CRISIL Risk & Infrastructure Solutions Ltd, aid, “ The aim of PURA is to bring in the efficiency of the private sector in developing infrastructures in rural areas. For timely release of capital grants, and funds under MoRD schemes PURA model has dedicated bank account managed by DRDA. Funds will be released in time based on a certification by independent engineer and concurrence of gram panchayats. Contracts are subject to service and performance guarantees. So quality will not be compromised in PURA projects.” 

 

Mr K Padmadasan, Company Secretary, INKEL- a PURA project- said, “PURA clusters in Thalikulam and Thiruangadi provided water supply, roads, village street lighting (solar), fish landing infrastructure, ambulance, market infrastructure, gas crematorium, a rural BPO.”

 

Mr Shekhar Reddy, President, MEIL, said, “MEIL PURA implemented the project at Kondapalli & Ibrahimpatnam in AP. PURA addresses many of the rural problems. There is scope for 500 PURAs if pilots are grounded successfully.”

 

Concluding the interactive session, Mr D K Singh, Deputy Secretary, Ministry of Rural Development, Government of India, said, “PURA is all about managing the urbanisation of rural areas instead of the prevailing notion of stopping migration of rural people to urban areas.  At the same time, the purchasing power of rural people can be improved. For entrepreneurs, PURA model is an attractive business opportunity as it gives about 15% guaranteed returns, which many businesses will not give.” 

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