In 2015, India as a
nation is enjoying exponential growth and establishing itself as one of the
most successful economies. The Indian government now faces the challenge of
providing infrastructure services and assets needed to maintain momentum.
Electricity, new highways and water supply are just some of these. Even with
2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) India struggles to
create adequate systems. Funds raised through taxes and regulatory fees are
massive yet limited, due to multiple expenses such as scientific research,
agricultural support and military defence, to name a few.
Water scarcity and
the management of waste water are especially pressing issues. Millions of
Indian citizens suffer from a lack of access to clean drinking water. With the
second largest population in the world, the problem is only expected to grow.
By 2050 India will over take China’s population, when it is expected to reach
1.6 billion people. With a growing population, comes the stress associated with
it. A massive agricultural sector to support food requirements, a growing
economy to sustain the livelihood of citizens and the need for drinking water
will only place a larger burden on quickly dwindling water bodies.
There is much to be
done and the government is quickly realizing that Indian companies will play a
large role in the coming years. Public Private Partnership models are being
adopted across the country to solve a plethora of issues. With appropriate
regulation, monitoring and political will the Indian government can give the
Indian Infrastructure scenario the boost it needs to support our growing nation
and compete with other first world countries.
In sphere of PPPs,
one man's record stands out as an example of what can be achieved. Mr. Arun
Lakhani,
MD of Vishvaraj has evolved in to one of India’s leading experts and has
successfully implemented water supply and waste water management projects.
He is the man
behind Nagpur 24x7 water supply project. Nagpur, due to rapid urbanisation
across the last two decades, has faced severe water supply challenges. The
availability of water has been highly inconsistent ranging from a few hours a
day to a few minutes . Mismanagement of
water distribution lead up to losses of up to 60%. Quality of water was
frequently found to be bellow drinking standards.
In
2012, in order to face this gigantic challenge the Nagpur Municipal Corporation
chose to enter in to a Public Private Partnership, a landmark move in the
history of the Government working hand-in-hand with the private sector. Nagpur
essentially opened it’s doors and mind to an opportunity
that
would help build a streamlined and efficient model which could be replicated in
the future.
Nagpur
became the first city in India to build a 24/7, fully pressurised drinking
water supply system. A joint venture company aptly named Orange City Water was
created and entered a concussion contract under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM).
When
asked about challenges faced, Mr. Lakhani said “Let challenges be a learning
opportunity and not a reason to stop the development of our nation”. PPPs create
several benefits such as access to additional resources, investments and
stat-of-the-art technology. Mr. Lakhani wants to apply these benefits to
several problems faced by India.
“Governments
worldwide are increasingly turning to the private sector to help provide
services in communication, energy and power, water and transport sectors.
Streamlined and efficient methods usually adopted by corporates are the reason
for this”, claims Mr. Arun Lakhani.
Reduced cost in the
form of better executed planning and development of each project is large
benefit that is often considered. A profitability approach ensures better
screening of options, structuring of projects and choice of technology.
“The Indian Government
can benefit from an increase in services, without spending immediate cash,
avoiding major risks by transferring them to the private sector and ensuring
timely delivery of projects”,
added Mr. Lakhani.
With success
stories such as the one unfolding in Nagpur, it is time to apply what we have
learnt to other parts of India. In fact, as of 2015 several states and cities
have already begun signing PPP agreements, especially in the water supply and
waste water treatment sectors. Punjab, Haryana, Panchkula, Gurgaon, Faridabad
and Karnal are some of these.
Haryana and Punjab
plan to implement state-of-the-art water supply systems and water waste
management protocols. Mr. Lakhani believes in empowering the private sector in
India and strongly advocates that PPPs would improve efficiency in water
systems ,water treatment plants and in the reuse of water. With a track record
such as his, it would be wise to pay heed to his advise and take a closer look
at his proposed solutions.
