Public-Private Partnership model best suited for Metro rail project

Mumbai 25 October 2010: Following the success of Public Private Partnership (PPP) model in various infrastructure development projects, the Central Government has considered the PPP model suitable for projects like, Metro rail and directed Mumbai Metropolitan Region Development Authority (MMRDA) to undertake projects on the same model.
“The Central Government has directed us to develop infrastructure projects on PPP model. This is after the Central Government has conducted due studies and also tasted the success of this model. In fact, in our last international workshop under National Mass Transit Research & Training Institute (NAMTTRI), the infrastructure authorities from USA also appreciated the PPP model being implemented in MMR,” said, Mr. Ratnakar Gaikwad, Metropolitan Commissioner, MMRDA.
The cost of infrastructure projects like Metro rail is exorbitant and soars to thousands of crores. Government funds should be ideally utilized for developmental projects like poverty eradication, primary education and other such social development services.
“The government can use public funds for social initiatives. The infrastructure development projects should be routed through PPP model. The advantages of the same are that the projects are completed with due deadlines or else it invites penalty on the private player for lethargic work. Further, the maintenance and costs pertaining to the same are handled by private players, reducing the State’s burden. The citizens are provided with modern world class facilities and the rates and tariffs are also kept under control by having elaborated them in the comprehensive contracts with private partners,” added Mr. Gaikwad. The Mumbai-Pune Express Way is one of the best examples of PPP in Maharashtra.