Pvt hand vital for large infra projects in K'tka: Panel

Is the PPP model the key to boost infrastructure growth in Karnataka? Join a panel of experts as they present their views on CNBC-TV18. The panel of experts comprise Neeta Ramnath, senior vice-president  transportation advisory and engineering, Feedback Infrastructure Services Pvt Ltd, Raj Kumar Khatri, secretary, department of government infrastructure development, Karnataka, KV Raju, economic advisor to Chief Minister, government of Karnataka, L Krishnan, managing director, TaeguTec India and K Ganga Prasad, managing director, GVR Infra Projects Ltd.

Below is an edited transcript of the panel discussion on CNBC-TV18. Also watch the accompanying videos Q:  Karnataka is betting big on infrastructure projects. What are the salient features of the new infrastructure policies? Raju: Karnataka is one of the few states in the country that is well endowed with human and physical resources and we have been harping on this for the last 40 years. But then we figured out that budgetary allocation itself was not enough to promote major infrastructure projects for two reasons.
One, creating infrastructure requires more capital investment and second, projects of this nature demanded efficiency in both designing and implementation.
So, for these two reasons, we opted for a public private partnership. Now so far the budgetary allocations - particularly in this year - there is a major jump of over Rs 19,000 crore .
This is about 18% of the total budgetary allocation for infrastructure projects. The government of India says that if any state wants to boost its economy, the state must post growth of 9%. Q:  And the current level is around 5%? Raju: To be frank, we are under 4.9%. Q: India or Karnataka? Raju: Karnataka is at 4.9% Q: So you want to scale it up? Raju: We want to scale it up such high levels to be able to tap potential and that is why we are pitching investment in such a big way. We are trying to design more infrastructure projects. If it happens, it will trigger the economy. Q: What is the strategy that you have adopted to create this infrastructure policy? I believe you have a triple bottom play?  Khatri: That is very right. In fact, sustainability, the projects being bankable and inclusion are the main stay of the infrastructure policy. This policy encourages and invites private efficiency and the private capital.
The infrastructure gaps have already been identified in the state and a vision document that delineates the present position and the goal to be acheived by 2020.
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We want to have a sustainable approach. The basic premise is that we should identify the projects by a programe approach which means an entire sector is studied, understood and then projects are designed.
To achieve this, we have engaged four leading consultants - Crisil, Imax, Deloitte and Feedback Infrastructure.
Now cutting across the sectors, we have initiated a programme to converge and institutionalise processes to identify projects. I am happy to tell you that in ten departments PPP cells have been formed and we have trained about 250 government officers on how to go about PPP projects. Q: Generally when you view a PPP project it is generally confined to core infrastructure sectors. But in Karnataka, PPP projects have been have initiated into soft infrastructure sectors. What is the rationale? Raju: In 2008, a master plan or a vision document was created wherein we identified the state's potential and the way forward. We also identified where the state stands and the goals that can be acheived in 10-years' time in the vision document.
If you look at, for example, the education sector. We want to move the gross enrollment ratio to the 13-15% at the higher education level. This will entail more colleges, more higher education centres, centres of excellence. And that's why we wanted to build a knowledge city a PPP model.
Even if you look at, for example, waste-water recycling and solid waste management, there is a huge scope for bringing in efficiency, project capital, faster mode of implementation, better technology- in short, there is huge potential. Your only aim is to tap the potential of the state, bring in the best of the technologies and tapping the huge investment opportunities available. Q: What is your view of the scene in Karnataka, from a CII and Taegu Tec point of view? Krishnan: PPP certainly brings in technology, private enterprise, private capital and expertise in terms of managing capital assets which are being created. So, the CII is completely backing state-governments all over the country and particularly the government of Karnataka to move towards using PPP models.
When the government of Karnataka talks about a USD 40-billion investment in infrastructure over the next, let us say, three-to-five-year period, it is going to have a big impact on the state's GDP and provide a huge impetus to growth.