Showing posts with label Pubic Private Partnerships. Show all posts
Showing posts with label Pubic Private Partnerships. Show all posts

Thursday, 28 January 2016

Runadhar Trust’s new approach to helping ryots’ kin



Nagpur: To provide stability to family members, especially children, of farmers who have committed suicide, nine prominent persons from the city have come together and established — Runadhar Charitable Society. They plan to establish a hostel and provide skill development training to kin of deceased farmers and monetary assistance every month. 

The nine persons include chairman of Vishvaraj Infrastructure Limited Arun Lakhani, who is president of the trust, corporator Sandip Joshi and Dr Pramod Giri, both vice-presidents, secretary Parag Saraf, joint-secretary Vrushali Deshpande, treasurer Dr Manoj Singarkhiya, and Dayal Mulchandani, Deepa Kale and Prashant Dani as members.

The society and its activities differ from that been done or planned by other social organizations. The team of nine persons established the trust two years ago. They appointed two students who had completed Master in Social Work and conducted a survey to find out what exactly is the main requirement for family members, especially children, of farmers who committed suicide.

Joshi told TOI the initiatives will begin from Nagpur and Wardha district and later across remaining areas of Vidarbha. "Our team's survey over two years included visits to houses of 350 families of deceased farmers in the two districts. One time or regular monetary assistance was not found to be a permanent solution. We realized the need to encourage and train the kin of deceased farmers to get employment or establish businesses. Therefore, we plan to establish a hostel in which skill development training will be given to only kin of deceased farmers along with accommodation in the city. Hostel project will be completed in current year itself. More activities will be planned 
in later stages," he said.

Joshi added that the project will begin with financial assistance to 100 families of deceased farmers. "We have identified 100 families from 14 tehsils in Wardha district and four tehsils in Nagpur district. We received response from 100 persons wishing to adopt a family each. We will deposit cheque of Rs4,000 per month in the account of all 100 families for one year. Then the initiative will be stopped, as we feel continuous financial assistance is not a solution. This is planned as we have to begin with some concrete step," he said.

The society has organized a programme to begin monetary assistance to 100 families on January 26. RSS chief Mohan Bhagwat will inaugurate the project and distribute cheques to the identified families.

The plan to begin from Wardha and Nagpur districts also differentiates the society's initiative from others. Most social organizations have started their initiatives in Yavatmal district despite the fact that farmers suicides are also witnessed in other districts of the region.

 This New is Originally Posted on The Time of India

Monday, 7 September 2015

Innovations in Pubic Private Partnerships

The BJP led NDA government has made it clear that Public Private Partnership (PPP) is the preferred mode for driving major infrastructure development projects. In light of this major push towards the PPP model we spoke to Mr. Arun Lakhani, Chairman & Managing Director Vishvaraj Infrastructure Ltd, one of the leading authorities on the PPP model.

Vishwaraj Infrastructure's various PPP projects such as the Nagpur 24X7 water supply project and Warora- Chandrapur - Ballarpur Road Project have given them the opportunity to bring about innovations in the PPP model and set up best practices.

We wanted to understand different working models for Public Private Partnerships and here are some interesting insights gleaned from our talks with Mr. Lakhani.
  1. Service Contract:
    Under this structure, Government (which is a public entity) will hire a private entity. The aim behind this hiring is to utilise the potential of the private entity to carry out certain tasks or services for a set amount of time.In this type of PPP model, the Government will be the main provider of the investment and the infrastructure associated with the project. The private entity with which the Government has partnered with will be under a contractual obligation to complete the project within a set time for a set cost.

  2. However, VIL under the leadership of Mr. Lakhani chose to do it differently for its 24X7 water projects. Under these the initial investment is brought in by the operator, the annuity is paid by the client over the contract period and the revenue generated by selling treated water is shared by both.

  3. Lease Contract:
    Under a lease contract the role of the government is to lease out a service to a contractor/private entity, with the role of the Government body being limited to awarding of the service to the private body and maintaining a check on quality and delivery.

  4. The private partner will be completely responsible for management of finance, operations, delivery and quality provided under the project. Financial risk associated with operation, maintenance is complete responsibility of the private partner.

    The duration of this type of contract is usually longer than that of Service contract. A Lease contract usually has duration of 10 years with an option to extend to 20 years.

  5. Joint Venture:
    Under this partnership model, the infrastructure is co-owned and is operated by both the partners (private and public). Partners either create a completely new company or become joint owners of an existing organization.

  6. A key factor in making this type of PPP structure successful is that the corporate governance must be quite good. This means that since Government is a regulator and also part owner, the running of the project must be kept independent from its interference.

    Another huge advantage is that since Government too has its own interests in the project (profits, sustainability) it will help out with official hurdles faced during the project.

  7. Management Contract:
    Unlike service contract, this contract involves the Government body giving out either all or some services to a private sector entity. These include supply and service contract, maintenance management and operational management.

  8. Even then the service provision is still in public domain. Private partner is given out responsibilities related to daily management of the project. Quite the private partner puts in the working capital but does not finance the project.

    Government pays the private partner pre-decided payment for its labour and other costs related to the project.

  9. Concessions:
    Under this type of partnership, the private partner is completely responsible for delivering all the services assigned to it. These services include operation, maintenance, collection, management, and construction and rehabilitation of the system.

  10. Unlike the management contract, the private partner is now in-charge and responsible for all the capital investment related to the project.

    There is also the option for the Government to make a capital investment in the project to enhance commercial viability of the project.

    The role of Government in this is all about regulating the price and quality of service. This involves setting standards for performance and make sure that private partner meets these standards.This type of contract is generally used in case where there is a need for creating new facilities or rehabilitation facilities.

    It is quite obvious that PPP is a format for the Government to improve infrastructure with the help of private partners. The final goal is to deliver quality projects by bringing in accountability and manageability from the private sector.

    "Whatever the chosen model for PPP the final decision should be based on a creating holistic project structures, designed keeping the socio - economic scenarios of the project areas in focus, thereby increasing the sustainability factor of the projects." Arun Lakhani.