Andhra Pradesh CM says PPPS should be for mutual benefit

23 Sep

Hyderabad: Participating in the summit on Strengthening the PPP in South India-Securing the Future” organised by the CII Southern Region here today, the Chief Minister Mr.N.Kiran Kumar Reddy said that the Public Private Partnership (PPP) is a crucial subject. He said ultimately the PPP should benefit the people, the State and the nation as a whole.

The Chief Minister said “We have got three basic questions which we have to evaluate. Why do we need PPPs? Who is going to benefit from the PPPs? Why the Government cannot invest?” He said that Money with the Government cannot be spent on all projects. However, the projects cannot be stopped due to lack of funds and that is why we require the partnership of industry to come in. But it should be for mutual benefit of both the partners, the State Government and the industry and ultimately for the benefit of the people. Otherwise, there is no use of having these PPPs. Finances with the Government have to be used in necessary and priority sectors like education, food security, health etc.

There should be good understanding for mutual benefits. Government, being responsible and accountable to public, we expect that with the infrastructure and development we are creating, the Government and people should be ultimately benefitted”. The Chief Minister said there are 214 PPP Projects now existing in the State worth Rs.81,000 crores and 78 PPP Projects are in the pipeline worth Rs.31,000 crores. This is a huge investment. He cited that the best model of PPP is the Telephone. He said “When we were young, when we wanted to make a call, it was a trunk call. That was when it was the monopoly of the Government. But when private players came in, there was a revolutionary change and a minute’s call then costing Rs.20 now became 10 paise. This is the example how it should benefit the common man”.

The Chief Minister also quoted the instance of the Rajiv Arogyasri scheme taking the support of private and corporate hospitals and made out schemes where poor people are operated and given best treatment and the Government pays for it. He said 20 per cent of the beds are in Government hospitals and the remaining 80 per cent are in private hospitals. “But I would like to increase it to 40 per cent in Government hospitals so that the Government hospitals and its infrastructure would develop”. He said if this facilities had to be created by Government alone, it requires huge investment. The Arogyasri scheme benefits both the people who get quality treatment and private hospitals are also benefitted and doing well since the Government and the insurance company are paying for it. The Chief Minister said the Government would like to have lot of such initiatives. The Chief Minister said Outer Ring Road (ORR) is another example.

“We are proud of the ORR coming up which is 158 kms without any signal light. However, there is demand for having speed breakers due to the recent accidents. Hyderabad Metro Rail (HMR) is another example and the work has already started. Ports and ‘108’ Ambulance scheme are also good examples and these should be for the benefit of both the people and the private players. The Chief Minister said “After I became the CM, we have taken the report of CII and we are targeting 15 lakh employment in the next 3 to 4 years.

But my officials are confident of creating 18 lakhs with the industry help. He said that the industry requires manpower but the youngsters do not have the skills the industry require. Hence the Government duty is to synchronise what the industry require. That is what we are trying to do. The Chief Minster also explained about the Rajiv Yuva Kiranalu by the Rajiv Education & Employment Mission through which we train not only the engineers, M.Tech etc., but also the tenth class pass and polytechnic students. The Chief Minister said having uneducated people is a disadvantage. But having educated people without employment is a bigger problem. We are trying to sort out this.

Unless the systems are transparent, investment by industries becomes difficult. We cannot expect an industrialist to wait for 8 or 10 years for his project to take off. We cannot expect his investment to be blocked for some small permission etc. We have to help the industry as fast as possible. For this, we have a person now in Government of India to monitor the permissions. The Chief Minister said that when private investments are more helpful when they are into infrastructure development so that these help both the State and the nation.

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