Kelkar committee to evaluate PPP in India was a committee set up to study and evaluate the extant
public-private partnership (PPP) model in India. The committee was set up by India's
central government
A central government is the government that is a controlling power over a unitary state. Another distinct but sovereign political entity is a federal government, which may have distinct powers at various levels of government, authorized or dele ...
and headed by
Vijay Kelkar
Vijay L. Kelkar (born 15 May 1942) is an Indian economist and academic, who is currently the Chairman of the Forum of Federations, Ottawa & India Development Foundation, New Delhi and Chairman of Janwani – a social initiative of the Mahratta C ...
. The committee was set up following
2015 Union budget of India
The 2015 Union budget of India refers to 2015–2016 Union budget of India. The beginning of the budget printing began on 19 February 2015 with the traditional halwa ceremony. From 20 February until the presentation of budget about 100 government ...
by the then finance minister of India
Arun Jaitley
Arun Jaitley (28 December 1952 – 24 August 2019) was an Indian politician and attorney. A member of the Bharatiya Janata Party, Jaitley served as the Minister of Finance and Corporate Affairs of the Government of India from 2014 to 2019. Jai ...
. It comprised 10 members. The committee submitted its recommendations to Jaitley on 19 November 2015.
Members
Following were the members of the committee:
* Sharmila Chavaly - Joint Secretary at the department of Economics was the committee secretary.
* C. S. Rajan - Chief Secretary,
Rajasthan
Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern s ...
,
* S. B. Nayar - chairman and managing director of Indian Infrastructure Finance Co. Ltd.
* Shekhar Shah - Director General of
National Council of Applied Economic Research (NCAER).
* P. Pradeep Kumar - Managing Director of corporate banking group of
State Bank of India.
* Vikram Limaye - Managing director of
Infrastructure Development Finance Company
Infrastructure Development Finance Company Limited, more commonly known as IDFC, is a finance company based in India under Department of Financial Services, Government of India. It provides finance and advisory services for infrastructure pro ...
(IDFC).
* Sudipto Sarkar - Lawyer.
* P. S. Behuria - retired
Indian Revenue Service (IRS) officer.
* Union transport ministry representative.
Recommendations
Amongst the recommendations made are:
* Establishment of 3P India.
* Case based risk allocation formula for various project participants.
* Establishment of independent regulating agencies.
* An amendment in the Prevention of corruption act to differentiate between errors of judgement and willful corrupt practices.
* Use the PPP model for airport, port and railway projects.
* Banks and other financial institutions be allowed to issue
zero-coupon bond
A zero coupon bond (also discount bond or deep discount bond) is a bond in which the face value is repaid at the time of maturity. Unlike regular bonds, it does not make periodic interest payments or have so-called coupons, hence the term zero- ...
s.
* The number of banks in a consortium be restricted.
* Banks develop improved capabilities for risk assessment and appraisal.
* Specific guidelines for encashment of
bank guarantees.
* To provide for monetisation of completed projects.
* Create a procedure to resume stuck projects.
* PPP should only be used for large projects.
* Creation of an inbuilt mechanism for renegotiation.
* Model concession agreements in various sectors be reviewed.
* The public sector undertakings be dissuaded from participating in PPP
* Road toll be collected electronically
* Constitution of an Infrastructure PPP Project Review Committee (IPRC) comprising an expert in finance and economics, law, and at least one related technocrat with not less than 15 years experience.
* Constitution of an Infrastructure PPP Adjudication Tribunal (IPAT) headed by a former Supreme Court/ High Court Judge with at a minimum of one technical and financial expert each as members.
References
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Government agencies of India
Ministry of Finance (India)
Infrastructure in India