PPP Implementation in different sectors

Government of Maharashtra has formulated its policy to finance road development, metro rail, tourism, ports, civil aviation, power, urban development and agriculture projects through private sector participation.

Transport & Roads

Road network plan Road improvements, construction of bridges over them and construction of new expressways, Bypasses etc. cannot be implemented due to paucity of funds with the State Government.

Metro Rail
Mumbai Metropolitan Region Development Authority (MMRDA) has planned a 146 kilometer long, rail based Mass Rapid Transit System (MRTS) for Mumbai. First route: Versova-Andheri-Ghatkopar Section, comprising 12 stations. This project is being implemented by Mumbai Metro One Private Limited a Special Purpose Vehicle formed by Reliance Energy Ltd, Veolia Transport (France) and MMRDA.

Civil Aviation
Airports: Indicators of economic growth. Problem with modernization. Initiation of privatization May 2004. Contract based process based on eligibility conditions. GVK-SA won bidding process & AAI stake was 26%.

Power
PPP model was based on Distribution franchise and ultra mega power projects. Franchise is responsible for various functions:
1. Supply of power. 2. Consumer Service. 3. Operation and maintenance of distribution network. 4. Billing and Collection. 5. Responsible for all obligations of distribution license in franchise area.

Urban Development
Urban infrastructure was unable to cater needs.

Urban Development
The investments for creating urban infrastructure comes from various sources - Government of India, Government of Maharashtra, Financial Institutions, External Development agencies, internal accruals of Urban Local Bodies and private entities. Investment by Government of India 50% and state governments 30% investments. Government of India is routed through Jawaharlal Nehru National Urban Renewal Mission (JNNURM), but even in that program, the funds fall short of the investment requirements submitted by the mission cities in their CDPs.

Urban Development
Fund constraints - problem with JNNURM. PPP is needed for improving the efficiencies in service delivery and the quality of the service output has been recognized by both Urban Local Bodies as well as the citizens. PPPs also deliver efficiency gains and enhanced impact of the investments. The efficient use of resources, availability of modern technology, better project design and implementation, and improved operations combine to deliver efficiency and effectiveness gains which are not readily produced in a public sector.

Agriculture
The present marketing system is characterized by a long, fragmented supply chain and high wastages. The system is also deficient in providing a fair share of consumer price to the producer and in ensuring high quality and hygiene of the produce National horticulture mission was launched in 2005-06.The NHM provides for setting up of different types of markets viz. Wholesale Markets, Rural Markets and Apni Mandis/Direct Markets. It comes under PPP.