The Finance Ministry has directed infrastructure departments to identify potential projects for private partnership execution, a source familiar with the matter disclosed. The move seeks to attract more private investment into public infrastructure and alleviate project delays. It will particularly focus on invigorating funding flows to sectors like urban infrastructure, railways, and roads, where private participation is lacking.
In the current fiscal year, the ministry plans to introduce a fresh public-private partnership (PPP) framework along with a standardised model concession agreement (MCA) for diverse infrastructure sectors. The MCA template aims to facilitate bankable and attractive projects for private investors, with flexibility for sector-specific clauses.
This initiative coincides with a broader resurgence in private investments projected by industry leaders for 2023-24. The government is also encouraging central public sector enterprises (CPSEs) to expedite capital expenditure. Although the pandemic disrupted private investment recovery, the government escalated capital spending to stimulate growth.