CII organized Suminfra 2014 – Summit on ‘Building Sustainable Smart Infrastructure’ on 11-13 December, 2014 at Tirupati.
a) Of the 800 plus projects being implemented under Public Private Partnership (PPP) Model in India, South India accounts for a lion's share in terms of numbers as well as the size of the projects. Inspite of increasing interest in PPP model, the quantum of investment from private sector in total infrastructure projects of India is very low compared to many other countries. Factors such as risk sharing between public and private institutions, bottlenecks in land acquisitions, and regulatory issues are affecting the private investment environment in PPP model. These are some of the highlights dicussed at the tenth edition of “Summit on Sustainable PPPs in Infrastructure” organised by CII with a theme of “Integrated Infrastructure Development under PPP - Emerging Scenario in South India”.
b) Many speakers suggested that governments and private partners should also think of developing surrounding eco system of the project, instead of just creating an infrastructure. They should also focus on inclusive growth in PPP projects. If planned properly this will lead to overall growth across different geographies of the country. Southern States have many common conditions and should learn from other's experiences, as per the speakers.
c) Ms Aparna Bhatia, Director PPP Cell, Ministry of Finance, Department of Economic affairs, Governemnt of India, said, “ Roads top the list of PPP projects followed by tourism and urban development. To define framework for PPP, Government of India identified challenges ranging from regulatory issues to funding. Most of the road projects are being funded by Viability Gap Funding scheme. Of the 12th plan infrastructure investment of Rs 41 lakh crores, governemnt of India expects 50% of the investment from private sector.”
d) Mr Vinayak Deshpande, Chairman, Suminfra 2012 & Managing Director, Tata Projects Ltd. Said, “This is the flagship event of CII for the four southern states. Over the past 9 years, the growth of the event was phenominal it has to its credit many important initiatives for industry and government. In PPP projects there were abnormal delays in land acquisitions. Southern states are blessed with some advantages like skilled engineers etc.”
e) Mr Paritosh Gupta, Co-Chairman, Suminfra 2012 & Managing Director, IL&FS – IDC, said, “India needs power, roads, telecom, and other urban infrastructure. Land acquisition models in Gujarat and Rajasthan were very successful. Project development involves seeing through the assets 5 years down the lane and working backwards.”
f) Dr Raj Kumar Khatri, Principal Secretary – IDD, Government of Karnataka, said, “ We have 12 PPP cells in Karnataka today. Website on PPP framework is created. We invite projects that are economically viable, environmental friendly, and address social inclusiveness. Through various PPP initiatives, Karnataka is planning for seamless connectivity between ports, roads, airports and railway trasportation.”
g) Mr Shailesh Pathak, President, Srei Infrastructure Finance Ltd, said, “ Government should create and identify existing infrastructure and should leave it to private sector after creating to manage it in a better way. We should evaluate Economic Rate of Return as well as Internal Rate of Return. PPP models stressed the balance sheets of infra companies. Companies who were bidding 10 years back do not have that much money and courage to bid today. Lending institutions should take into account, the value appreciation while evaluating the projects.”
h) Mr B Ramaswamy, Convenor, Infrastructure & Power Task Force, CII Karnataka and Lead SR- Feedback Infrastructure Services Pvt Ltd, “ Good roads should reduce the travel time, but waiting time at the toll booths is actually increasing.”
i) Mr Mahesh Babu, Managing Director, IL& FS Waste, said, “ Over 50 million tonnes of municipal solid waste is generated annually in India and there is no framework to handle it. We handle about 5,000 tonnes of solid waste per day. We are focussing of reducing solid waste going into landfills. Government should give support end products like fertiliser or power produced out of waste.”
j) Mr Srinivas Banda, Managing Director, KIPDC, said, “ Karnataka is the first state in India to bring the industrial facilitation act. We proposed an aero city near devanahalli airport, for which the last date for bidding is 31-01-2013. Like this we have planned many projects in infrastructure sectors across Karnataka and invite private investments.”
Contributing around 26% to the national economy, the Southern Region, comprising of Andhra Pradesh, Karnataka, Kerala, Pondicherry, and Tamil Nadu jointly have been growing at a Compounded Annual Growth Rate (CAGR) of 9.11% since 2004-05. However, in the past four years, the growth momentum has witnessed considerable reduction with the annual growth rate recording below 8% mark for three of the last four years. Though much has been blamed on the global crisis of 2008-09, infrastructure bottlenecks, political instability in some states, lack of champions for promoting mega infrastructure projects and Governance issues related to transparent mechanisms in award of PPP projects, etc are the areas of concern that has and is expected to have a ripple effect on the Southern Region growth story.
For the sustenance of its growth momentum of over 8 percent per annum for the 12th Plan Period, the region has to address the key concerns of infrastructure bottlenecks & also to create positive investment environment for successful PPP Project Development.
For the last few years, SUMINFRA became the main platform for discussing the opportunities and bottlenecks in sustainable PPP projects in infrastructure in South India and the earlier editions focused on Fast Tracking, Accelerating PPP Projects and also covered on policy and structural changes needed in the PPP processes.
Given this background, Confederation of Indian Industry (CII) organized this edition, the SUMINFRA 2012 on 23-24 November, 2012 at Bangalore with a focus on identifying big ticket/core infrastructure projects in the Southern Region, which provided required impetus for enhanced growth in the region. Hence the theme for SUMINFRA 2012 was –Integrated Infrastructure Development under PPP - Emerging Scenario in Southern India.
The Summit highlighted the key issues and challenges on structuring & delivering key infrastructure projects and options for various stake holders to help the region in attaining sustainable growth.
The forum provided a platform for one-on-one interaction between the government, sector experts and policy makers to help charting out a road map to sustainable growth story.
Objectives of Suminfra
· Showcase models and case studies of best practices in PPP in Infrastructure
· Discuss & share experiences on optimum utilisation of existing infrastructure
· Learning from other countries which have active participation in the Infrastructure sector and facilitated long term funds
· Showcase learning experiences in Indian PPP in Infrastructure
· Showcase of projects in southern states for Private Participation
· PPPs in roads, ports, airports, railways, urban & rural infrastructure, etc.
· Policy interventions for the infrastructure development through PPP
Suminfra 2012 covered the following topics:
· PPP in Infrastructure - The Story So Far
· World Wide Experiences - Success Stories of PPP
· Mega/Integrated Projects of South India- Scope for PPP
· Urban Infrastructure - Status & Perspective
· Regulatory & Funding Mechanisms for PPP Projects
Suminfra 2012 Features
1. State Integrated Infrastructure Promotion (SIIP) session by the 4 Southern State Governments - AP, Karnataka, Tamil Nadu & Kerala. This is a forum for the State Governments to promote opportunities for private sector in Infrastructure. The Southern State Governments which include: Andhra Pradesh, Karnataka, Kerala and Tamil Nadu have actively participated and supported the previous eight editions of Suminfra. High level representatives from the Southern State Governments would make presentations highlighting policy frameworks, success stories of PPPs in their respective States and more importantly on opportunities for industry.
2. Suminfra 2012 also features an exposition.
3. B2B and B2G meetings using the automated system (www.myCII.in).
You will get access to following Knowledge Resources by subscribing to the Digital
Library of this event.