lannin in ndia       5.45
     here comes a different investment model. Main           mobilised for the creation of physical
     elements of this investment model are as given          and social infrastructure. It was launched
     below.                                                  in watershed management successfully.
         1. The hitherto monopoly sectors of the             Gujarat had shown highly successful
             industry were opened up for private             model of this investment in its ‘Pani
             investment—barring Nuclear Research,            Panchayat’.
             Nuclear power and Railways (latter two       4. To support the private sector to mobilise
             areas are partially opened)—in all of           their share of fund in the infrastructure
             them direct foreign investments have            PPP, the government has set up the
             also been allowed (between 26 to 100            Infrastructure Development Fund, which
             per cent). We see the ‘investment model’        also has provision for the Viability Gap
             for ‘infrastructure sector’ shifting from       Funding (VGF).
             ‘government-led’ to ‘private-led’.           5. Inside the general idea of PPP, the
         2. In coming times, GoI articulated the idea        government has also put in place some
             of the Public Private Partnership (PPP)         other options of investment models, such
             model of investment for this sector, to         as BOT (Build-Opetare-Transfer); BOO
             provide confidence and space to the             (Build-Own-Operate); BOOT (Build-
             private sector to enter the sectors (as the     Own-Operate-Transfer); BLT (Build-
             private sector was not much interested          Lease-Transfer); BOLT (Build Operate-
             to participate due to some inter-related        Lease-Transfer); DBFO (Design-Build-
             problems in the sector, for example lack        Finance-Operate); DBOT (DesignBuild-
             of ‘market reforms’). By the 10th Plan          Operate-Transfer); DCMF (Design-
             we see private sector putting in around         Construct-Manage-Finance); etc.
             21 per cent of funds required for the        6. In the area of mobilising resources for
             infrastructure projects in the PPP mode         the expansion of the Social Sector, we
             which increased up to 32 per cent by the        see an increased focus coming from the
             11th Plan. On the basis of past two plans       governments. But the government still
             the PC projected that private sector will       thinks inadequacy of funds for the proper
             put in around 50 per cent (48 per cent,         and timely development of the sector.
             to be precise) of the funds required for        Thus, by 2012, the GoI proposed plans to
             infrastructure development during the           include the participation of private sector
             12th Plan (which could not be achieved          in the sector, mainly, education and health
             due to several internal and external            care through the PPP mode, which is still
             reasons till 2015). Here, one point             to be formally launched. Meanwhile,
             should not be missed that in future the         the provision regarding corporate social
             infrastructure sector is to be fully handled    responsibility (CSR) via the Companies
             by the private sector—as per the idea of        Act, 2013, some additional funds have
             the reform process.                             started flowing to the fund-starved social
         3. In 2002, the government, articulated             sector. By early 2015, the government
             the idea of PPP (Public-Private-People-         has asked the PSUs to flow their part
             Partnership) through the 10th Plan              of the CSR expenditures to the GoI for
             (2002–07). The idea has its use at the          the newly launched sanitation drive, the
             local level where the resources are to be       Swachch Bharat Abhiyan.