How PPP can be help Digital India Campaign a Success

Undoubtedly, internet is one of the greatest stories of mankind. In today's digital age it has become essential that people should be able to access information and upgrade skills using digital devices. Besides, the launch of the Digital India initiative by Indian government has only reiterated a belief that digitization is the key to future success. But the huge and varied demographics of India are a huge challenge.

It won't be easy for government to implement this initiative at such a large scale without external help. One of the best options it can use is Public Private Partnerships or PPP as it is quite often called.In this article, we look at how PPP can help Indian government to achieve its goal of making India digital.

Current Situation:
As per industry projections, India will be home to about 526 million internet users and more than 105 billion devices by 2018. While this is great news for government's campaign for digitizing India, it does not possess all the resources required to meet the demands of implementing its digitization campaign. This offers a huge opportunity for the private players to help government and gain some mileage for themselves too.

We look at the benefits of this type of partnerships for digital India initiative

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Benefits of PPP for Digital India:
Efficiency is something that is highly valued by the users and is one of the crucial factors in achieving success in today's competitive market. "The most important thing that a private player will bring to the table is efficiency" says Mr. Arun Lakhani, MD Vishvaraj Infrastructure and advisor to Government on PPP. Yes, funding will also be a crucial part but we all know efficiency is not the forte of the government.

As mentioned earlier, the number of internet users in India is rising steadily. Thanks to PPP, the private players will be able to avail of the government resources that will help them achieve sustainability and scalability.

Another important benefit of PPP for digitization process is that government will be able to have access to new, innovative ideas and technology. PPPs will help government and IT industry to improve the information ecosystem that will transform city operations.

To see how this works we look at the example of an app developed for Chicago city. The app regularly publishes the schedule of sweepers that lets the citizen know whether a sweeper is coming along or not.

The government IT spending is about $7.2 Billion and a huge portion of this amount will be for digital India campaign. PPPs will enable the government to roll out various initiatives on the basis of strong technology infrastructure that will be provided by private players.

Although we can be swept away by the positives of PPP, there are yet problems that plague it. Next up we look at what these problems are.

Problems faced by PPP in Digital India:
One of the biggest issues is that PPP for. It is not surprising to IT & technology is a new proposition for the Government. See that PPP is more related with domains like defence and infrastructure. One does not come across PPPs for IT sector that often.

Another problem PPPs face is the presence of outdated laws and policies that are currently in practice. In its early days, funding for PPP was not that easy. Although government has noticed this issue recently it has now amended laws pertaining to funding.

As is the case with PPPs in other sectors, there are considerable risks for private players who are keen to participate in such an endeavour. But this can no longer be a reason to not participate in such endeavours. Government has now taken initiatives aimed at minimizing such risks for private players.

India has made progress in key developmental areas one of which is IT and the time is now ripe to make it count. If we want to successfully implement digital India campaign then PPPs are key to it.

Driving Innovation through PPP

Undoubtedly, innovation is the key to economic development. It is also a fact that small enterprises have proved to be a leading source of innovation. They have become one of the keys contributors. Realizing this potential of small businesses, the Government has also taken initiatives, such as Public Private Partnerships (PPP), that encourage them to participate in contributing to the development of the nation through innovation.

In this article, we look at how PPPs can be used as an effective tool for innovation.

PPP and Innovation:

"There is no denying that the private sector is way ahead of the public sector as far as innovation is concerned. Governments must capitalize on this. Public Private Partnerships opens up new opportunities for innovation and stimulates demand for innovation in multiple sectors such as infrastructure, medicine, science, agriculture etc" says Mr. Arun Lakhani, MD Vishvaraj Infrastructure and leading authority on PPPs.

PPPs can play a key role in not only solving a problem but doing it innovatively. To understand how, we can look at a very common problem that is faced by urban cities around the world; traffic congestion.

For cities like Mumbai, Delhi and other metro cities, the problem is not just insufficient roads but also handling of huge traffic inflow. Constructing more roads might help to some extent but it won’t solve the issue entirely as traffic will keep increasing with economic growth.

"There is a need for an innovative solution that will minimize or eliminate traffic congestion and utilize the existing roads better. This is where government can partner up with private companies to solve this issue" says Mr. Lakhani.

A real life example of such a partnership can be seen in Chinese city Tiajin which faced severe traffic congestion problem. The city, in collaboration with World Economic Forum’s Future of Urban Development & Services (FUDS) Initiative achieved its goal of drastically minimizing the traffic problem.

The goal was achieved through an intelligent transportation system (ITS) technology which uses sensors which provide drivers with real-time traffic information that will enable them to avoid routes with heavy traffic.

Benefits of using PPP for innovation:

• Helps to attract private sector expertise which is so essential for innovation
• Optimize the use of available knowledge
• Pooling of resources can help to address issues that cannot be addressed by a single entity
• Provides a greater return on research funding
• Successfully addresses the issues so that commercialization of outcome is possible
• Create a competitive environment for open and transparent tenders in the implementation of innovative projects
• Offers a huge platform to apply innovations

Barriers for PPP:

• Lack of joint efforts by both the partners:
  It has been commonly observed that the Government is like a sleeping giant in PPP ventures. In fact, there is an attitude that once a private partner has been chosen, the work is done.
  
  
  Also, innovation is generally assumed to be a domain of private sector. If innovation is to be achieved, this cannot go on. There has to be joint effort by both the parties.

• Unnecessary interference by public partner (Government) in innovation process:
  Time and again we have seen how promising initiatives have gone off track thanks to interferences at every other stage of such ventures; especially political. It is not rare to see political parties trying to exert their influence on how PPP ventures shape up so that they can walk away with the credits.

• Unequal financial risks:
  This one is not too difficult to understand. Given the laidback attitude of the Government over the years towards PPPs, the private sector has always bourn the financial brunt of such ventures. This has proved to be a big hindrance in encouraging more private entities to participate in PPP. It is high time government takes steps to ease these inhibitions and fears of the private parties.
  
  
  PPPs definitely offer us an excellent channel of innovation that can be deliver high quality optimum results. There are countless ways PPPs can be utilized to not only solve problems but also achieve economic development through innovation and also improve our lives.

Commercially Viable Waste Water Management

India is home to the second largest population in the world. The steady population growth along with urbanisation and industrialisation has put a lot of pressure on the fresh water resources in India.Add to this the increasingly stringent environmental laws working towards sustainable solutions and we have a water crisis on our hands.

As a result, the demand for waste water management services and technologies is on the rise. Unfortunately, the existing services are struggling to match up to these demands thanks to lack of adequate investment, laws and R&D required in this segment.

We spoke to Mr. Arun Lakhani, MD Vishvaraj Infrastructure and expert in waste water management solutions for the Government of India to understand different ways of managing the water crisis.

Adapt to water sector PPP regulations:
For too long, the regulations for commercial water usage in India have been far too lenient, leading to wasteful and polluting use of water. Unmonitored commercial usage of water is one of the leading reasons for the current shortage in water supply and water pollution that plagues most urban cities.

Bring in the latest water management technology:
Waste water management requires high-tech plants, processes and technology. The past few years has seen the Indian market pick up on these technologies with the influx of multi-national companies bringing latest technology to India.

Currently, technologies such as filtration, softening, demineralisation (DM), ultrafiltration (UF) are regularly used for water treatment. But that is not sufficient to tackle the water management issue.

The time has come for companies to adopt the latest technologies such as Zero Liquid Discharge (ZLD) technology.

To put it in simple words, ZLD is a technology that helps plants meet discharge and water reuse requirements, enabling businesses to better manage water.

One of the examples of successful implementation of ZLD is the Tirupur project in Tamil Nadu. This was undertaken by Praj industries which offer ZLD and recycle and reuse solutions with advanced technologies.

Tirupur was facing severe pollution issues that were caused by textile industries operating within the region. The factories would discharge their coloured effluents into the surrounding water bodies that were polluting the water.

To tackle this situation, Praj industries decided to implement ZLD technology.You can imagine how grave the situation was, as almost 600 textiles units remained closed for almost two years.

By implementing the ZLD technology Praj industries was successful in solving the water pollution problem. Besides, they also found ways to cover the project cost too such as selling the treated water to the end users.

One of the reasons for a lackadaisical attitude of companies towards adopting these technologies is the high cost of acquiring and implementing these techniques.

However, given the fact that regulations will become stricter in the future, investing in technologies like ZLD will bring benefits in the long run.

As per Frost & Sullivan research firm, the Indian water and wastewater treatment market earned more than Rs 6,300 crore in revenue in the year 2011. This is expected to reach Rs 10,230 crore in 2016.

The market is on the rise for waste water management service providers with more and more companies adapting to better solutions.

As the fresh water resources are depleting it is high time the waste water management companies must shift their focus on incorporating sustainable, innovative and advanced technologies.

Final Word:
The waste water management sector is quite dynamic and it will only keep on posing challenges for companies offering these solutions. It is thus imperative that these companies keep incorporating advanced automation, technology and expertise to meet the public needs at affordable cost. It will go a long way in ensuring sustainable economic and environmental development.

Rejuvenating The Ganga

Water, especially fresh river water, has been the cradle of the civilization and has led to both the birth & downfall of human settlements. To see a worthy example of the importance of the rivers in any civilization we need not see any further than the Great Ganga - a historically revered water body across the ages in India.

But the Ganga, as the world knows it, is slowly losing its identity; one of the major reasons for this being industrialization.

Ganga - More than just a river:
Ganga is one of nature's finest spectacles and a sight to behold. Those who have visited this mighty river have never left without being awed by its majesty and grandeur. The river has flown in all its glory since thousands of years giving birth to innumerable stories and scriptures around it.

Sadly, these very cities that the Ganga gave birth to, have contributed to its tragic downfall.

The Ganga is dying a slow and visibly painful death.

Ganga - The Problems:
One of the biggest problems is the pollution and it is not surprising. Take any major river around the world and you will see it facing similar issues.

Toxic is the right word when it comes to defining the current condition of water of Ganga. And the reason for it is not too difficult to find.

One of the obvious reasons being the domestic and industrial sewage that is being released uninhibitedly every day into the river waters. With so many industries flourishing around Ganga it is was only a matter of time before this happened.

Another reason that has contributed greatly to the pollution of Ganga are the rituals performed at its bank; immersing the ashes of a dead person being one of them.

But that's not all. If you think human beings are the only ones affected by this, you are wrong.

The polluted water has led to the depletion and in many cases extinction of the freshwater flora and fauna. To get the idea of how bad the situation is sample this. There are only four species of river Dolphins left in the world and one of them happens to be in Ganga and it has been declared endangered.

Over fishing is another menace plaguing Ganga. The river is a hunting ground for fishermen. But the fishermen too cannot be blamed for it as there is hardly any other alternative way of earning their livelihood.

Solutions for cleaner Ganga:
The solutions to these problems need to be implemented in a planned manner which must be pursued with strong dedication over a long period of time.

"The immediate step to take would be minimizing the pollution of the water. The river bank needs to be stabilised by carrying out activities like plantation. Laws must be put in place specifically for industries around Ganga so as to minimize the damage to the river." Says Mr. Arun Lakhani, MD Vishvaraj Infrastructure and leading authority on waste water management.

Another method is to bring in private partners in this cleanliness drive. They must be engaged through partnerships of varying types. Thanks to the advancements in water conservation technology there are now methods available to ensure the preservation of this great river.

We now come to the most important component of the solution, people.

An awareness must be inculcated in people about how their actions (and inactions) are hurting the Ganga. By making these very people a part of the solution will go a long way in ensuring a cleaner Ganga.

They must be encouraged to inculcate civic habits that improve the quality of Ganga's surroundings. The dependence of fishermen on Ganga should be minimised by providing them an alternative source of livelihood.

The cleaner Ganga movement has gained a lot of momentum. We must stop viewing Ganga as a part of a particular community but rather as a source of national pride.

This should be looked at as preserving a national heritage that cuts across the lines of faith and unites people. Hence, it must be considered as a duty of every Indian to contribute towards it.

Nagpur 24x7 Water Projects - An Experiment and a Testimony

The situation
In the sphere of urban development and economic sustainability, it is pivotal to acquire and study as much data as possible. Analysis and learnings from past and on-going projects is necessary for determining the success of future projects and the allocation of national and local budgets.

With this in mind, nations such as India must plan decades ahead in order to achieve the desired growth. With a growing population of 1.2 billion people and a scarcity of resources, it is imperative that the Government take swift actions towards long term goals. Water, and its availability, is one such resource which is seen as not only a necessity but an indicator of general well-being. Urban India is often found struggling to provide citizens with clean drinking water and the situation only becomes worse as people migrate from the towns and villages to surrounding cities.

Nagpur, the third largest city in Maharashtra, is a great example of a local government taking action to cope with the increasing demands of its inhabitants. Due to rapid urbanisation of Nagpur across the last two decades, the challenges for adequate water supply have also increased. Availability of water has been inconsistent and ranges from a few hours a day to a slightly rare but possible, few minutes a day. Compounded with this is the mismanagement of water distribution leading to losses of up to 60%. In addition quality of water is frequently found to be below 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)

An expansive requirement for infrastructural upgradation and replacement means that it will take a minimum of five years to connect every citizen with 24/7 water supply. On their end, the Nagpur Municipal Corporation will retain ownership of the assets and will take responsibility of setting up the tariffs. Orange City Water will operate all the water treatment plants and the water distribution network, amounting to a combined capacity of ~750 MLD

The goal is to eventually connect the entire city, including the slum population with a safe supply of water, better in quality and pressure. Water wastage is a great concern and this hope is to reduce it significantly, through the better maintenance of storage systems, pipes and taps.

During our interview with him, CEO of Vishvaraj Infrastructures, the driving force behind Napur 24x7 water supply project, Mr. Arun Lakhani shared a poignant view on this matter. "Our nation's government needs to see private players not just as tax-paying entities but partners of development. PPPs need to set their goals high in order to gain the most from the benefits."

Benefits
The benefits are of this PPP model can only be understood and appreciated by comprehending the advantages that are gained through a 24/7 water supply system.

24x7 supply translates to a better public health.Maintaining full pressure removes the risk of bacterial contamination that can occur during interrupted water supply.

A PPP in this sector ensures a massive improvement in the services provided to all consumers, who henceforth are seen as customers. An increase in quantity, improvement in timing and consistency in availability across all starts of society is not just expected but required from an economic standpoint.

Service to the poor and to the rich is seen through a non-biased viewer. 24x7 supply means all citizens can hope to enjoy better health and hygiene which preventing the loss in economically productive time earlier used for collecting and carrying water. Indirectly, this saves time for employment opportunities.

24x7 allows customers to pay for better service as it reduces the costs they earlier incurred for coping with the inconsistencies.

Through efficient management overflowing storage systems are avoided and collected water is prevented from being discarded when new water arrives.

A PPP model ensures that the use of technology is given priority and in this way conservation is encouraged through metering and state-of-the art monitoring systems. This helps achieve management and operational efficiencies and reduces illegal connections.

Before concluding, it is necessary to go back to the start. The idea is not just to take action but begin an initiative so that one can learn from mistakes and evolve. It is impossible to put a system into place without overcoming challenges, correcting flaws and understanding changing requirements. The Nagpur Municipal Corporation has taken the first step towards the future, but the path will surely bring forth several challenges. "Let hurdles be a learning opportunity and not a reason to stop the development of our nation", says Mr. Arun Lakhani.

Public Private Partnership - The Need of the Hour

India in 2015, is at the brink of a great leap forward, culturally, socially and economically.

With a population of 1.2 billion people and counting, we as a nation need to evolve and adapt to our ever-changing environment in order to sustain ourselves and prosper.

At this tipping point, our government finds itself stressed and lacking resources to provide stable and well built infrastructure such as roads, health care, electricity, water and waste management. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) and not including regulatory fees collected, our nation struggles to create adequate systems. One must take into consideration that the Government needs to provide for several facilities and infrastructure in one amongst many others such as scientific research, agriculture, military defence etc.

Social, economic and ecological issues have become a pressing matter for the Indian government and sustainability models which were once ignored are now being studied in order to tackle the obstacles expected in the coming decades.

India's strategy towards managing accelerated growth has been a great move in the geo-economical arena. Public Private Partnership models have slowly been developed over two decades and have witnessed success and learning experiences as well. However, several Private sector players are often wary of entering Government contracts. A host of reasons, play a role in this.

Leading PPP expert and MD of Vishvaraj infrastructure, Shri. Arun Lakhani ran us through some of the constraints that all private sector companies must take account of before venturing in to a PPP.

"Now, more that ever, there is a need for established companies and new entrepreneurs to come forward and play a vital role in developing our Nation, but only once they understand the challenges and are able to convert them in to opportunities", shared Mr. Lakhani.

Considerations for PPP Projects
Since India has open it's proverbial doors to PPPs, post the economic reforms in the 1990s, projects have faced issues which have restrained more the successful and widespread implementation of this model.

Legal Volatility
As Indian policy enforcers evolve they improve in their execution of long-term plans. However, one must understand that this is a process and as with all such matters, changes are inevitable. Over the years several inconsistencies have been pinpointed and improved. However, this has required private partners to alter their operations and internal policies, sometimes at their own cost.

"Staying updated with PPP regulations, flexibility and a streamlined approach to the environment is the best way forward", says the much experienced PPP advisor.

Tariffs
Although, progress has been achieved, there is much to be done about the pace at which we are growing. Deregulation of tariffs for public services needs to happen quicker if private investors can make the profits that will determine their future decisions.

Greater financial management and a stringent cost-vigilance is the only way forward according to Mr.Lakhani.

Transparency in the Bidding Process
Although technology has greatly assisted in making the tender acquiring process more transparent, several PPPs have shown signs of inconsistencies when it comes to bidding and suspension processes.

If more industrialists, builders and foreign investors are to step-in, transparency will have to be prioritised.

Although these aspects of our current socio-economic situation which every private company must keep in mind, they need not act as deterrents. With a growing investment in technology, streamlining of government protocols and taxes, there is much to be gained for those willing to place their faith in the subsequent success of PPPs.

Understanding Public Private Partnerships

A lot has been said and debated about Public Private Partnerships, but for many individuals this just serves as a term used to describe an obscure idea of development occurring in our nation. It is important for the citizens of India to be involved in decisions being made within our democracy and for that to occur they must be educated in the intricacies of something as impactful as the creation of a partnership between the public and private sector.

In the context of infrastructure development what is PPP?

As is the case with most countries, governments face the challenging task of providing new infrastructure services and assets such as electricity supply or a new highway. 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 defense, to name a few.

In such a scenario, partnering with the private sector provides an attractive solution towards creating a new supply source for infrastructural improvements.

How does PPP work?

A legal contract binds partners in a PPP to share the responsibility for the implementation, operation, management and monitoring of the infrastructure project. Emphasis is laid on each partner's skill and their ability to fulfil public needs through the efficient allocation of resources and risks in return of rewards.

What advantages PPPs may provide?

To better understand the advantages of a PPP we spoke to Mr. Arun Lakhani, MD of Vishvaraj Infrastructures Limited. "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"

In addition, there are several other reasons which encourage governments to collaborate with private players.

• The access to additional resources that can be utilised to match the exponentially increasing needs of the public

• Availability of extra investments through local and international players

• State-of-the-art technology employed for the operation and management of these services

Reduced cost in the form of better executed planning and development of each project is a large benefit that is often considered. A profitability driven 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.

PPP are often misunderstood to be simple construction projects by the masses. However, in reality, there are differences between a traditional construction project and a PPP in terms of development, implementation and management. The objective of the PPP is to deliver a specific service and not simply build an asset. Most importantly PPP contracts are more complex and have a much longer tenure than a construction contract. An understanding of this is necessary not just for the partners but also for the general public interested in the development of the country.

Countries around the world have experimented with different forms of PPP. In India, there are 6 major models, Service Contract, Management Contract, Lease Contract, Concessions, Build-Operate-Transfer and Joint Ventures. The government usually analyses the need for a PPP and then decides upon the model through which to achieve it's goal. A great example of a PPP model in our country is the Nagpur 24x7 water 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 to losses of upto 60%. Quality of water was frequently found to be below drinking standards.

In 2012, in order to overcome 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)

There several challenges faced when forming a PPP and these are often cited as reasons to avoid a collaborative approach. However, naysayers and critics fail to see the potential that PPPs provide for the citizens and the government. It is of course important to understand the challenges and in most scenarios these are caused to due to bad governance, weak policies and a lack of transparency. "As a country we should overcome the challenges, figure out ways to build a better PPP model based on strong protocols and the use of technology and rise over the risks that this model presents, because only in doing so is India going to match the benchmarks of economic growth set by other nations", advises Mr. Arun Lakhani.

There is much to be learnt and researched about PPP models, but as citizens the right way ahead would be to study the projects proposed under PPPs and vocalise our concern or support.