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.