Finance Minister Mr. Pranab Mukherjee today called for harnessing the benefits of public Private Partnership, PPP, model for providing better services to weaker sections of society.Addressing a conclave in New Delhi today, Mr. Mukherjee asserted that those who can afford to pay must be made to pay but the weaker sections have to be given special attention. He said that the target for the Private Public Partnership investment in the current plan is One trillion dollars and 50 percent of it has to come from Private sector.Mr. Mukherjee launched a capacity building initiative to improve decision making process in this area. The Finance Minister added that mobilization of equity and debt financing were major challenges in the way of fostering private investment.He also called upon the state governments to develop and adopt better models of PPP. Addressing the function, the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia made a strong case for encouraging PPP model. He asserted that this model can play an important role in the development of infrastructure sector in the country. Mr. Ahluwalia said that desired growth rate can not be achieved without investments in this vital sector. He said, there is a need to experiment in social sector particularly in health and education.Mr. Ahluwalia urged the Finance Ministry to examine the possibility of setting up Infrastructure Debt Funds to fund core sector development activities. The Planning Commission Deputy Chairman also made a case for exempting debt funds from payment of withholding tax, as the levy would make their operation unviable. Withholding tax is the amount that is required to be deducted by an entity while paying interest on borrowings.
News On AIR | December 22, 2010 6:44 PM
FM calls for harnessing benefits of PPP for providing services to weaker sections