Odisha Cabinet Approves ‘Odisha PPP Policy 2023’ to Boost Public Private Partnerships in the State
The Odisha Cabinet, led by Chief Minister Naveen Patnaik, has given the green light to the ‘Odisha Public Private Partnership (PPP) Policy 2023’ in order to strengthen and accelerate the growth of PPPs in the state. This policy aims to strike a balance between the risks and rewards borne by the private sector while delivering value for money to the state and ensuring better and more affordable services in the long run.
According to the Odisha Government’s press statement, the policy will leverage both State and Central Government funds, support private investments, and establish an enabling environment to harness the efficiency, innovation, and flexibility of the private sector. The focus will be on delivering improved infrastructure and services at an optimal cost, with an emphasis on social infrastructure.
The policy also seeks to establish robust institutional and governance frameworks within the state to attract private sector investments. Additionally, it aims to provide a level playing field for all participants and safeguard the interests of all stakeholders. To ensure speedy clearance of projects, an institutional mechanism will be put in place.
Under the new policy, PPP projects requiring a minimum investment of Rs 500 crore will be approved by a High-Level Clearance Authority (HLCA). The Empowered Committee on Infrastructure (ECI) will have the authority to approve projects ranging from Rs 10 crore to Rs 500 crore, while projects up to Rs 10 Crore can be approved by the Directorate of PPP. At the district level, a District PPP committee led by the District Collector will coordinate and facilitate the implementation of infrastructure projects on the PPP route.
The ‘Odisha PPP Policy 2023’ covers 21 sectors that can be implemented through PPP, with a significant focus on waste management, energy efficiency measures, and renewable and alternative/non-conventional energy sectors.
To boost the viability of PPP projects, the policy includes a range of government incentives and assistance under Viability Gap Funding (VGF) and the Odisha Infrastructure Development Fund (OIDF).
In summary, the approval of the ‘Odisha PPP Policy 2023’ by the state’s Cabinet marks a significant step towards promoting public-private partnerships in Odisha. With its balanced approach towards risk and rewards, this policy aims to provide value for money to the state and ensure the delivery of better and more affordable services over the long term. By leveraging government funds and creating a conducive environment for private investment, the policy seeks to enhance infrastructure and service delivery in key sectors.
