Tuesday 11 June 2013
The Looting of National Resources in the Name of PPP
Must be Stopped
In last two decades, the Central and State Governments have been trying to push Public-Private Partnership(PPP) model in the development of infrastructure sector citing the lack of resources with the government. Infrastructure of various types including roads, bridges, airports, sea ports, electricity generation and distribution, this PPP model is being opted. In this model, private sector is made partner in many ways. Sometime, under this model, private sector is asked to take up the projects on Build-Operate-Transfer basis, or sometimes, the ownership of these projects isalso transferred to them. In some cases, this partnership is limited to the construction of the project only.
There is no denial to this fact that the country needs infrastructure. However, it does not mean that the private sector be given a license to loot. This is not in the national interest. The governments have been acquiring vast lands and handing over to the private sector at throw away prices in the name of this PPP model. In addition to this, a sizeable investment is also being made available by the governments apart from guaranteed returns. For opting the PPP model, argument being given by the governments are such that the government owned and maintained infrastructure projects are of poor quality and inefficient, despite the hefty investments by the governments on these projects. Hence, the governments favour partnership of private sector in the infrastructure projects, saying that the same is in the national interest, as they help optimum utilisation of resources.
But in fact, the reality is different. This is making birth to a neo Zamindari System. As during the British rule, the then government had given the unlimited rights to some of the private persons as land rulers to exploit the agrarian class and earn a hefty profits, like wise the governments of the day are allotting the profitable projects to the private sector in the name of better and efficient management. This is also affecting the national security. In the recent years, we witness that one private company has given the contract of Delhi Airport to earn undue profits and the other one has been given thousands of acres of land at throw away prices in the name of Yamuna Expressway. It is worth mentioning that the company who developed the Yamuna Expressway project has earned more than 20000 Crores of rupees by selling just 5% of the total land acquired by it and likewise, the company developing Delhi airport has also earned the similar amount and it will continue to earn thousands of crores in the years to come through airport tax. There are numerous other examples on the same lines in the country. These private projects are being given the every possible government assisstance after circumventing government rules and on the other hand, the constitutional institution for auditing goverenment supported projects, Comptroller and Auditor General (CAG) is being denied the right to inspect and audit these projects. As a result of this, the private players are charging hefty and arbitrary toll taxes, airport taxes and other tariffs. This is not only the loot of national resources but also the exploitation of the common men.
While this loot of public money is going on in the area of infrastructure development through this PPP model, the Central government has decided to implement this model in the fields of education and public health during the 12th Five year plan. After its implementation, the education and medical care would be very costly and out of reach of the common men.
This National Conference of the Swadeshi Jagran Manch demands that:
1. Before selecting any project for PPP, a detailed analysis about the need, scope and nature of the proposal be made by an independent regulatory body. Independent inspection and audit of all on-going projects under PPP model be undertaken by the CAG, erring companies be taken to task and the common men be given relief from these companies. Land allotted for the project should not be allowed to be used for any other purpose.
2. Instead of giving education and public health to the private sector under PPP model, the plan outlay on education be increased to 8% of GDP and likewise the play outlay on public health be increased to 6% of GDP. Apart from this, private corporate sector be debarred in agriculture and water management.
click the down link for Hindi Resolution or find attached file. —
