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EQUATIONS Response to the National PPP Policy, 2011-Draft
October 13, 2011

Call for Action

EQUATIONS' Response to the National PPP Policy, 2011 (Draft)Announced by the Department of Economic Affairs, Ministry of Finance, Government of India

13 October 2011

The Ministry of Finance issued the draft National PPP Policy, 2011 on September 27th and had invited comments/suggestions by October 15th. EQUATIONS has submitted it comments from the point of view of tourism. There are 5 key inadequacies/issues that need to be addressed: inadequate review for the need for PPPs, inadequate impact studies on PPPs, PPPs are driven by economic interests and returns on investment, impacting the access of under-privileged to basic services like health and education, clubbing of all tourism projects as public purpose being problematic as many of the PPP projects are in the high-end sectors and finally lack of basic documentation on the outcomes of existing PPP projects. While highlighting these issues, the comments also propose specific changes that need to be made in the text of the policy.

To,                                                                                                                          13 October 2011                                                                                                                                           
Mr. Pranab Mukherjee,
Minister of Finance
North Block
New Delhi

Dear Mr. Mukherjee,

Subject: EQUATIONS' Response to the National PPP Policy, 2011 (Draft)

Greetings from EQUATIONS!

EQUATIONS welcomes the initiative of the Department of Economic Affairs to formulate a long overdue national policy governing Public Private Partnerships (PPPs).

Enclosed are our comments and response to the policy draft. We find that while the economic and financial aspects of PPPs have been given due consideration, the policy falls short in terms of transparency, accountability and the space for eliciting and upholding people's responses to the PPP projects.

Specifically in the context of tourism, it is extremely important that the sector as a whole not be considered as public purpose and that instead, only projects covering basic services like shelters, bus stops, budget hotels, sanitation be categorised as such. Their should be no involvement of the Government in high-end tourism projects which should be left to the private sector initiatives.

While the government has initiated this process, it is nowhere near sufficient. Spaces for vibrant public debates should be facilitated on this issue before finalisation. Therefore, we recommend that the Ministry extend the deadline for receiving comments and responses from people and that this policy not be passed until diverse stakeholders have responded to the draft.

Looking forward to action by Ministry on the critical issues that have been raised.

Yours sincerely,

Swathi Seshadri
Programme Coordinator

Copy to:
1. Secretary, Department of Economic Affairs, Ministry of Finance
2. Secretary, Ministry of Tourism


1. EQUATIONS’ Response to National PPP Policy, 2011-Draft-Announced by Dept of Economic Affairs-13 October 2011.

Click here to download 'EQUATIONS' Response to the National PPP Policy, 2011-Draft-13 October 2011-EQUATIONS', 80.8kb.

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