Big infra plan (Mint)

Mains Paper 3: Economy
Prelims level: Public-Private Partnership model
Mains level: Role of PPP model towards achieving 5 trillion economy

Context:

• The government is placing its bets on rapid infrastructure development to achieve India’s $5 trillion economy goal by 2024-25.
• Finance minister Nirmala Sitharaman unveiled a big ₹1.02 trillion infrastructure spending plan for the next five years.
• Under it, the Centre and states would each shoulder 39% of the investment burden, while the private sector would bear the rest.

Various challenges faced by the government:

• An asset-liability mismatch is risky.
• The public-private partnership finance model has sought to provide a more workable solution, although its success too has been chequered, at best.
• Land acquisition delays, weak enforcement of contracts and sundry difficulties in the conduct of business in India have also served to dissuade private participation.
• The scope of the challenge on hand can be gauged from India’s recent record in pushing infrastructure development.
• India managed to spend only ₹51,000 crore on it over the past six years.
• To double that figure in one less year would require major moves to ease the path. Until then, the plan could be greeted with cautious optimism. Given the resolve, it could be achieved.

Conclusion:

• The public-private partnership finance model has sought to provide a more workable solution, although its success too has been chequered at best.

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Prelims Questions:

Q.1) With reference to the ‘Nagpur Resolution- A holistic approach for empowering citizens’, consider the following statements:
1. It was adopted during the Regional Conference on ‘Improving Public Service Delivery – Role of Governments’, in Nagpur, Maharashtra.
2. The conference was organised by the Department of Administrative Reforms and Public Grievances (DARPG), Government of India, in collaboration with the Government of Maharashtra.

Which of the statements given above are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) None

Ans: C
Mains Questions:
Q.1) What the various challenges faced by the government to achieve 5 trillion economy target?