Aiming to become India’s first $trillion economy, Uttar Pradesh is mulling over a new public private partnership (PPP) policy to attract investment.
UP chief minister Yogi Adityanath has directed officials for a ‘future ready’ PPP policy framework encompassing project identification, consultation, bid preparation, procurement, contract management, post-implementation oversight etc.
He said PPP projects accounted for 10 percent of total investment proposals received at the UP Global Investors Summit (GIS) 2023.
Since UP had netted PPP projects worth Rs 40 trillion at the GIS 2023, the state’s PPP kitty is estimated at Rs 4 trillion.
The proposed PPP policy will sweet the state’s proposition in key sectors such as infrastructure, hospitality, roads etc.
A dedicated PPP cell will be instituted at ‘Invest UP’ which is the state’s dedicated industry interface. The cell will focus on developing the PPP framework, promoting inter-departmental coordination, facilitating investment and ensuring alignment with government schemes.
In the proposed PPP policy, UP is expected to hike viability gap funding contribution from existing 20 percent to 30 percent of the project cost.
Moreover, the state will constitute a UP Infrastructure Development Fund (UPIDF) with a corpus of Rs 500 crore.