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Pvt Hands On Board To Firm Up Industrial Estates On A Public-Private Partnership (PPP) ModelBy Anirudh Chturvedi, Section Real Estate
Armed with the new Delhi Industries Bill 2008, the state government now wants to involve private hands in running what were till date seen as "badly managed" industrial estates. The plan, senior officials said, is to run these estates on a public-private partnership (PPP) model.
With the manufacturing sector contributing as much as 12 per cent in Delhi's Gross State Domestic Product, the government is looking at extensive organised development. The strategy is keeping in sync with the Masterplan, which calls for regularising all residential areas with over 70 per cent industrial activity into industrial areas, officials said. "The proposal is still at a preliminary stage," Commissioner (Industries) Dharmendra said, "and we haven't worked out the module yet. But we will definitely introduce a PPP model for industries. The problem right now is that the industrial areas are very badly managed and maintained." One of the biggest problems, he said, is an overlap of authorities managing industrial estates in the city -- while some are managed by MCD, several are under the DDA, and the state government's Industries department takes care of the rest. "This system will be replaced and only one agency will be made responsible for all industrial estates; uniform standards will be set for all industrial areas.
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"We have already roped in International Finance Corporation (the private sector arm of the World Bank Group) to formulate a workable PPP model for us."
The government's original proposal was bring in a PPP model in which it would provide 85 per cent funding and the rest come from entrepreneurs in the respective estate through their association. But private firms have refused to pay any additional funding, an Industries department official said. "Entrepreneurs say they should not be asked to pay more since they already pay property tax to MCD." Government officials said a PPP model would mean private firms in each industrial estate would be made to undertake its functioning and maintenance. The government would monitor the outsourced work, and firms in these estates would be made stakeholders in the model. Source:
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