Future growth in infra and digital process
NITI Aayog CEO Amitabh Kant has emphasized the need to ensure adequate return on investments in infrastructure through properly structured Special Purpose Vehicles (SPVs) and de-risking of projects.
South Asian Regional Conference on Urban Infrastructure in Delhi on 15 Nov 2018, he said “it is required to evolve unique models and systems of urban planning which are creative, innovative and sustainable, and suited for South Asian countries.”
Department of Economic Affairs Secretary Subhash Chandra Garg has also emphasised on the need to decentralised urbanisation, with porous boundaries between urban and rural areas as the key to sustainable urbanisation.
He stressed that the future areas of growth and development are infrastructure and digitalised delivery of goods & services.
Considering the quantum deficit in infrastructure implementation today vis-à-vis the demand, it is extremely imperative to focus on newer means of implementing and financing urban infrastructure.
In India alone, until 2040, estimated investments of around $4.5 trillion are required in the infrastructure space, according to a release from the Public Information Bureau on the conference.
There are an estimated 98 million people who reside in the slums of Indian cities and are disproportionately deprived of access to basic services and infrastructure.
“These gaps must be addressed, so that the cities grow equitably and in an environmentally responsible way,” it said.
The South Asian regional conference, held 15-16 Nov 2018, is a first of its kind, with participation including regional leaders from the government, industry, research organizations, academia, think tanks and civil society.
The Conference aims to review overall issues and assess the sustainability of Public-private partnerships (PPPs) and urban finance in South Asia, specifically India, while broadening the knowledge base and engaging on international best practices.
Countries need to explore innovative models to implement infrastructure projects. PPPs have been one such option that enables governments to optimally share the risks associated with a project’s life cycle.
However, for making government procurement more dynamic, it is imperative to focus on wider options.
Furthermore, to implement urban infrastructure in India, a deeper deliberation is required on the means of democratising the governance at the city level with a view towards providing greater operational and fiscal autonomy to Urban Local Bodies (ULBs), said the release.
These challenges and the emerging opportunities necessitate focusing on the institutional environment to improve the delivery of sustainable urban infrastructure and services and evaluating alternatives for long term, predictable financing.
NITI Aayog, along with the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and the Asian Development Bank (ADB), hosted the conference on “Urban Infrastructure: New Approaches to Public & Private Partnerships and Municipal Finance Innovations”. fiinews.com
