BENGALURU: In a bold move to address its financial challenges and accelerate infrastructure growth, the govt has unveiled a new public-private partnership (PPP) policy under which it has thrown open 109 sectors and sub-sectors for private investment. The state is banking on this policy to boost its infrastructure development and invite greater private sector participation.
Grappling with a finance crunch, especially with regard to its guarantee schemes, the govt aims to encourage private investments in sectors ranging from agriculture, energy, healthcare, transportation, and tourism to urban infrastructure, education, and housing. The policy, approved by the cabinet last week, envisions private investments for “all new investments in infrastructure,” marking a significant shift in how the state plans to approach development.
The 109 sectors span 15 departments, including agriculture, energy, industrial infrastructure, public markets, sports, urban development, and forestry. Each sector is now open for collaboration, signalling the govt’s intent to expand its reach and modernise public infrastructure.
The policy introduces the ‘Swiss Challenge’ route to encourage innovative private proposals for public infrastructure development. Under this route, private players may submit unsolicited proposals that include detailed technological solutions and comprehensive cost estimates, covering expenses for development studies.
The initiative aims to foster novel ideas that align with the state’s requirements while providing a platform for private investment. Investment thresholds under this scheme range from Rs 25 crore to Rs 50 crore across most sectors, with higher investments between Rs 200 crore and Rs 500 crore allowed in the irrigation sector.
It excludes projects in backward areas or those with high social relevance that are not financially viable. In such cases, the govt will assume responsibility. Financial support or incentives will be considered only for public infrastructure projects designed for common use and intended to bridge the viability gap on a PPP basis.
