Active Stocks
Thu Mar 28 2024 14:49:26
  1. Tata Steel share price
  2. 155.95 2.03%
  1. HDFC Bank share price
  2. 1,455.55 1.03%
  1. ITC share price
  2. 430.95 0.69%
  1. Power Grid Corporation Of India share price
  2. 278.75 2.84%
  1. State Bank Of India share price
  2. 756.00 2.99%
Business News/ Industry / Government incapable of handling infrastructure projects: Amitabh Kant
BackBack

Government incapable of handling infrastructure projects: Amitabh Kant

Niti Aayog CEO Amitabh Kant pitches for government organizations' exit from operation and maintenance of infrastructure projects

Niti Aayog CEO Amitabh Kant says government should restrict its role to planning and developing infrastructure. Photo: Ramesh Pathania/MintPremium
Niti Aayog CEO Amitabh Kant says government should restrict its role to planning and developing infrastructure. Photo: Ramesh Pathania/Mint

New Delhi: Niti Aayog chief executive officer Amitabh Kant on Wednesday pitched in for government organizations’ exit from the operation and maintenance of infrastructure projects, including the big ones like dedicated freight corridor and national highways, saying the “government is incapable to handle" them.

“It’s high time and the government should start reverse BOT (build-operate-transfer) and let the private sector handle these projects. The government is incapable to handle the operation and maintenance of infrastructure projects," said Kant, adding that national highways and dedicated freight corridors should be the first bets. He added that the privatization for operation and maintenance should not be limited to infrastructure projects only, but also be extended to jails, schools and colleges.

Kant, who was speaking at the India PPP Summit 2017 organised by trade body FICCI, said that the government should restrict its role to planning and developing infrastructure. “The government should make special purpose vehicles to develop projects and once it’s completed, the SPV should be sold out," he said.

He blamed the private sector for the current crisis in PPP investment stating there are hundreds of examples where the private sector has gone for aggressive bidding and didn’t bother to do due-diligence as a result of which the PPP mode has got a setback. “Private sector has performed very badly," Kant said. There is no shortage of money in the market and India can use the opportunity by delisting its projects. “Need of the hour is to market these projects well," Kant said.

He said the Indian Railways should refrain from running dedicated freight corridors being built as the private sector is competent enough to run these efficiently. “The dedicated freight corridor build up by railways which will be completed by 2018 can reduce journey of 14 days to 14 hours which is a paradigm shift. Railways should not try to run it and give it to private sector to manage it," Kant said.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Jul 2017, 02:02 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App