Background of PPP of the State
Odisha is being considered as a pioneer to explore expertise and investment potential of private sector in providing public goods and services. Though projects were being conceptualised under Public Private Partnership (PPP) before 2007, it was in 2007 when the institutional mechanism was put in place by formulation of a PPP Policy for the State. Two institutional bodies i.e High Level Clearance Authority (HLCA) and Empowered Committee on Infrastructure (ECI) were also formed in September 2007. While HLCA chaired by Hon’ble Chief Minister was entrusted with the power to approve projects above Rupees 500 Crore, ECI chaired by Chief Secretary was given the power to approve projects worth less than Rupees 500 Crore. The first ECI met on 4th December 2007. A dedicated State PPP Cell was formed in erstwhile Planning & Co-Ordination Department and in each Department a PPP Cell was also established with one nodal officer to co-ordinate with State PPP Cell.
Since then, Odisha has been endeavouring PPP Projects in several sectors like Ports, Roads, Housing & Urban Development, Water supply, Education, Health, Creation of Storage Godowns, Renewable Energy etc.
Meanwhile, the PPP scenario in the country has witnessed a significant change. India launched National Infrastructure Pipeline in 2020 which envisages an investment of Rs. 111 Lakh Crore over the period from 2020 to 2025. Government of India has also emphasised on Asset Monetisation and Recycling. To boost investment in core infrastructure vis –a vis social sectors, Revamped VGF Guideline has been issued.
Keeping pace with the dynamics, the state has formed a dedicated Directorate of PPP in Finance Department since November 2019. The State has come up with the new PPP Policy 2023. To assist the Directorate of PPP, a Project Management Unit has been established in the Directorate having human resources who have expertise in PPP matters. The State has formed dedicated PPP Cells in core infrastructure Departments having a nodal officer. Odisha is one of the first States to adventure PPP projects in Health sector and has successfully completed transactions in four locations where secondary/tertiary care facilities will be available. The projects have been undertaken with VGF support under Scheme II of Revamped VGF Guidelines. The State has also come up with its own VGF Guidelines and a support funding mechanism under Odisha Infrastructure Development Fund (OIDF).
Department of Economic Affairs, GoI has taken steps for capacity building activities by organising training on PPP in the premier institutes like IIM, Bangalore, Kolkata, Kozhikode, Shilong, Indore, Raipur, ISB, Hyderabad, Mohali. These training programmes are coordinated in the State by Directorate PPP in Finance Department and many participants from different Infrastructure departments of Odisha have attended such programmes. The PPP Directorate is also conducting capacity building training in the State for PPP as well as for Asset Monetisation.
The State is continuously endeavouring to create a more conducive ecosystem for developing PPP Projects in the State.