Q. The PPPAC/ Public Private Partnership Appraisal Committee has been in news in relation to privatisation of airports. Which of the following statements about PPP system in India are correct?
- The Empowered Group of Secretaries is headed by NITI Aayog’s CEO.
- PPP projects worth 1000 crore INR and above are sent to PPPAC for approval before cabinet’s approval.
- The Kelkar panel had proposed discouraging “Swiss challenge formula” approach in PPP.
Select the correct option from the codes given below:
Answer:
All of the above
Notes: Explanation:
Statement 1 is correct:
Empowered group of secretaries/ EGoS was set up in 2018. It is headed by the NITI Aayog CEO and deals with decision making in the PPP system. It also includes the secretaries of aviation ministry, department of economic affairs and of expenditure. It will take decision of PPP projects that are beyond the PPPAC’s scope. The current decision by PPPAC to allow a single company to bid and win multiple airports was based on the EGoS decision.
Statement 2 is correct:
PPPAC is a committee under the finance ministry that deals with approving projects under PPP model in central sector. It falls under the Department of Economic Affairs and its approval is sought in projects worth 1000 crore INR and above before getting final approval from the cabinet. PPPAC is constituted by the NITI Aayog CEO, secretaries of expenditure, economic affairs, legal affairs and also officials from the respective department for the project.
Statement 3 is correct:
Kelkar committee had proposed discouraging the use of Swiss challenge formula or “unsolicited proposals” from the private sector, whereby the private players identify and propose to develop a project. The committee had said that this would cause information asymmetries and reduce transparency. The committee had recommended the formation of clear guidelines and discontinuation of “one size fits all” approach to solve problems in PPP.