The state of Gujarat has gone ahead in the promotion of Public-Private partnerships to a great extent. Gujarat has a legal framework in the form of the GID Act, organization for developing PPPs in the form of GIDB and sector policies in place to attract private sector investments.
GIDB is a focal point organization mandated under the Act to promote private sector partnership. GIDB plays pivotal role in project structuring, undertaking feasibility studies, prepare and approve concession agreements, over see bidding process, lay down priorities of the project, advise in matters of policy and undertake master plan exercise. GIDB also plays nodal role in railway projects taken up with PPP. GIDB is high powered body under the chairmanship of Hon’ble CM. The Executive Committee of GIDB is chaired by the Minister of State ( Industries). Chief Secretary and Senior Secretaries are the members of the Board. GIDB is the organization where the planning and projects for PPP are given final nodes. Legal framework for PPPs.
The BOT law of the state entitled Gujarat Infrastructure Development Act -1999 has been framed. The said act provides for a regulatory framework for the private sector participation in financing, construction, maintenance and operation of infrastructure projects undertaken on a private sector participation- basis in the state of Gujarat. This Act has also given a statutory status to the Board under which the GIDB acts as a nodal agency for development of infrastructure in the state. BOT law provides a framework for private sector participation in financing, construction, operation and maintenance of infrastructure projects in the State. This law is based upon clear-cut enunciation of the project cycle required for timely and effective completion of infrastructure projects.
It provides a fair, transparent and clear-cut mechanism for selection of developers, either through international competitive bidding, or through direct negotiations, with the very strong element of transparency and competitive arrangement.
To boost up the private sector participation in infrastructure sector and in turn to achieve overall economic development and provision of goods and services to the people and society , this Act shall play a vital role and will prove to be a foundation stone in shaping the economy of the State.
Based on PPP experiences over a past few years, the act has been amended to attract further PPP investments in Gujarat. The major amendments to the act are
1 Financial Assistance from the State Government to the project increased to 20% instead of 15% Subsidy originally proposed.
2.Concession Period for a Project can be extended beyond 35 years on mutually agreed terms between both parties.
3. Projects of special nature can be directly negotiated instead of going through the competitive bid process. These projects include
- A project which is innovative or involves proprietary technology or franchise which is exclusively available with the person globally
- A project wherein competitive public bidding as provided in section 9 has failed to select a developer
- A project to provide social services to the people including community services and public utilities
- An infrastructure project which is an essential link for another bigger infrastructure project owned or operated by the same person.
4.Planning for Infrastructure in the State through PPPs.
The Gujarat Infrastructure Agenda presents the state with a coherent and comprehensive Action paper for integrated development across all infrastructure sectors. The Agenda develops a prioritized ‘shelf of projects’ for inviting and attracting private participation for infrastructure development in the state, and identifies the policy initiatives needed by the state to facilitate the same. Investment in infrastructure has a high potential pay off in terms of economic growth. The facilities such as high quality power, efficient ports, a well developed road net work, telecommunication, industrial parks, industrial water supply and sewerage will attract the industrial development needed to sustain the economic growth.
The Blueprint for Infrastructure in Gujarat 2020(BIG 2020) details the objectives, vision and strategy for growth in the period leading up to 2020. The starting point of this exercise was defining the Vision for Gujarat. This vision has been detailed across both economic targets and the social dimension to ensure that growth is inclusive and benefits all sections of society. The vision statements are a mix of numerical targets and qualitative descriptions that describe the direction and magnitude of change. We have then defined seventeen growth engines which hold special prominence for Gujarat across the agriculture, industry and services sectors. We have evolved a vision backed by strategic interventions for each of these growth engines. On the social side, a vision with quantifiable targets has been set across the spheres of education, health, social safety, environment, governance and gender equality.
The vital missing link of infrastructure in any Indian growth story does not need elaboration. This document details the vision, demand-supply analysis, shelf of projects(vision period and immediate five years) and the key reform and action agenda across chosen infrastructure sectors covering energy, transport, Telecom, knowledge, urban infrastructure, industrial infrastructure, recreation and tourism.
|Sr. No. ||Sectors ||Investment (Rs. Crore) |
||SIRs, SEZs, Logistics and Industrial Parks
5.Projects implemented in Gujarat with Public-Private Partnerships.
- Pipavav Port -1992
- Vadodara –Halol Toll Road- 1996
- ROB at GNFC Bharuch- 1996
- Ahmedabad-Mehsana Toll Road – 1997
- Watrak Bridge- 1997
- Icchapur-Hazira Road – 1997
- Mundra Port -1998
- Zadeshwar Bridge – 1999
- Dahej Chemical Terminal
- Hazira &Dahej LNG Terminals
Important projects under consideration by the State through PPP.
- Busbased Rapid transit system for Ahmedabad
- Maroli Port Development
- Bedi Port Development
- Dahej-Bharuch guage conversion Project
- Development of Hazira- Surat Rail line
- Rajkot Jamnagar Vadinar Road
- Development of SEZ at Dahej
- Sutrapada Port Development
- Simar port development
- Halol-Godhra-Shamlaji Road
- Watersupply to Morbi town for 24x7 through PPP
- Privatisation of 7 State Transport Bus Terminals (Ahmedabad, Vadodara, Surat, Mehsana ,Palanpur)
Projects under consideration under viability gap funding scheme of GOI.
In principle approval has been granted by ministry of finance, GoI to the following three projects:
- Rajkot-Jamnagar Vadinar Road
- Halol-Godhra-Shamlaji Road
- Ahmedabad-Viramgam Road
The Projects under scrutiny of VGF Scheme are as follows:
- Bhuj-Bhachau Road
- Nakhatrana- Panandhro Road
The Gujarat Ports have been Privatized in a phased manner.There are Jetties along the Coast which are developed & maintained by Port base industries. These jetties enjoy concession in port charges and have total operational freedom. There are 19 captive jetties along the Gujarat coast.Some of the major captive jetties are Reliance Jetty at Sikka with an investment of U.S. 646 Mln $, L&T jetty at Pipavav with an investment of 37 mln $, Indo Gulf jetty at Dahej with an investment of 55Mln $, Reliance, Essar, L&T, Gujarat Ambuja and IPCL jetties at Hazira with an investment of appx. 201 Mln$.
Besides, there exists a private jetty in the existing GMB ports. These jetties are developed by the Port users. They have total operational freedom and enjoy concession in port charges. There are 8 private jetties along the Gujarat coast with an investment of U.S. $ 42 Mln.
Finally, there are private ports whose development is on BOOT Basis. These ports have total operational freedom and tariff freedom. Currently, there are 5 private ports in operation. The developers are AP Moller (Mearsk group) at Pipavav with an investment of U.S $155 MLN, GAPL at Mundra with an investment of 305 mln $, Shell India Ltd at Hazira with an investment of U.S. $ 535 MLN, Petronet LNG at Dahej with an investment of 622 mln$, and Gujarat Chemical Port terminal at Dahej with an investment of 202 U.S. mln $.
Several Ports have been awarded for development, namely Bedi, Mahuva, Sutrapada, Khambhat, Modhwa, Simar, Solid cargo Port at Dahej, container terminal at Hazira and the like.
The Gujarat Maritime Board has done privatization of port services in its own ports. This includes privatization of light enrage, dredging, tug towing, piloting and other essential services.
The Government of Gujarat has in December, 1995 announced the Port Policy, which integrates the development of ports with industrial development, power generation and infrastructure development. The policy envisages development of ten green-field ports, six of them as fully private and four as joint sector ports.
The Government has already initiated Detailed Project Report-Pre-Feasibility Studies for these sites. The Government has announced package of BOOT principles as a next action of the Government. The BOOT Policy for the ports was announced in 1997.
The BOOT principles serve as a framework for involvement of private sector in the construction and operation of the new ports. The BOOT principles have been formulated for the operation of new private and joint sector ports in Gujarat as announced in the Port Policy, 1995.
Roads and Highways
The Central Government is responsible for the development and maintenance of National Highways under the National Highways Act, 1956. The Ministry of Surface Transport (Most) is the coordinating agency responsible for planning, technical standardisation and budgeting for National Highways, on behalf of the Central Government.
The State Government is mandated with the development and maintenance of all roads other than the National Highways. The Government of Gujarat has recognized the need for private participation in the Road sector. Accordingly, it is reviewing the existing road policy to facilitate private participation on B-O-T basis. Additionally, the roads and building (R&B) department's Agenda 2010 document, has identified seven projects to be undertaken by the private sector. Of these, the railway-over-bridge project near G.N.F.C. Bharuch has been completed and two other projects viz. the Vadodara-Halol road and the Ahmedabad-Mehsana road is executed with assistance from IL&FS. Besides, the Zadeshwar bridge, Watrak Bridge, Chhayapuri ROB, Icchapur Hazira Road, Mahi Bridge have been implemented through PPP.
To facilitate private sector participation in road projects, the Gujarat Government has amended the Bombay Motor Vehicles Act, 9 of 1994, which permits the levy of toll on either new construction or strengthening/improvements of road and bridge projects. Specific Guidelines has been framed for private sector participation.
A Road policy for the state has also been formulated in 1996 which includes guidelines for Private Participation in Road Projects and addresses the issues of land acquisition, finance, Mode of selection, Project detail, design and specifications, Return on Investment and finalizing rates of toll, settlement of disputes, additional benefits over and above the Toll rights, Management and Maintenance of the Project, Environmental Protection, legal requirement, and the like.
The total length of railway lines in the State is 5312 Kms. Comprising approximately 2500 kms. of broad gauge (BG), 2000 kms. of metre gauge (MG) and 812 kms. of narrow gauge lines (NG).
The State of Gujarat is connected to the rest of India by railways at six points - three towards Rajasthan, one towards Madhya Pradesh and two towards Maharashtra. Though northern Saurashtra, and central and eastern Gujarat are very well connected through broad gauge lines, southern Saurashtra and Kutch Region do not have direct connectivity to the rest of the country by broad gauge lines.
The State Government has taken up various Railway Gauge conversion projects with PPP initiatives. To name a few, the Gandhidham-Palanpur Gauge conversion project, Rail connectivity to Pipavav and Mundra ports, Dhrangadhra –Kuda gauge conversion, etc. The important links being taken up under PPP are the Dahej-Bharuch gauge conversion and the Hazira Port connectivity.
Gujarat has a fairly extensive network of airports and airfields scattered throughout the State. The airport locations in Gujarat can be classified as tourist centres and industrial centres. Given the likely growth in economic activity, there is a need to plan for expanding existing airports and setting-up greenfield airports, particularly for the emerging hubs for industrial and urban growth.
Existing Airports in Gujarat
A list of the functional airports of Gujarat, and the size of aircraft that they are capable of landing, is given in the table below:
|Sr. No. ||Name of Airport ||Ownership ||Max. size of aircraft |
||AB - 300 |
||AB - 320 |
||B - 737 |
||B - 737 |
||AAI / IAF
||B - 737 |
||AAI / IAF
||B - 737 |
||F - 27 |
||F - 27 |
||F - 27 |
||DO - 228 |
||DO - 228 |
Gujarat offers holistic medicinal services and cost effective treatment through various District hospitals, Sub district hospitals and Private Speciality Hospitals. Most sought after super – specialities in the state include cardiology, neurosurgery, orthopaedics, infertility treatment, joint replacement and eye surgeries.
Share of primary care in the total healthcare market of Gujarat is around 75-80%. Of the total healthcare market, secondary and tertiary care account for 17% and 4% respectively. The market for tertiary care is expected to grow at a faster rate, due to rise in income levels, increasing adoption of health insurance and rise in complex in-patient ailments (heart diseases, kidney ailments, cancer).
The state has about 7274 sub-centres, 1072 primary health centres (PHC), 253 community health centres (CHC) that serve the primary, secondary and tertiary needs of the rural populace. There are 106 Urban Family Welfare Centres. Some of them are run by NGO, trust, municipalities and municipal corporations. There are 28 urban health posts.
A health policy formulated first in 1947 was based on two broad principles i.e. no denial of care for want of ability to pay and that it was the state’s responsibility to provide healthcare to its people. However, with time it became necessary to revisit the principles of the premises taken in this policy. The first National Health Policy was formulated in 1983 which took a view that private sector initiative in healthcare was an imperative and that there was a need to increase publicly funded primary care access. Thereafter the National Health Policy was revised in 2002 with a view to providing increased access to decentralized public health system, enhancing public health investment and converging public programmes.
States, over the years, have formulated their own policies for promotion and expansion of health services with a view to expanding the public health system and also encouraging private sector investments. Gujarat has also formulated several policies in these regards.
Public Private Partnership in Health sector
The state health department has also initiated several reforms through public private partnership for improving the service delivery across the state. These have been highlighted briefly:
- Entrusting Rural Health, Medical Services & Management of PHC to a Voluntary Organisation
- Recognizing that PHCs do not have adequate facilities to provide health services effectively, the low levels of utilization and lack of effective mechanisms to evaluate and monitor their performance, harnessing local support and private initiatives are emerging as an important option to improve the performance of the PHCs under a partnership programme. So far, one PHC and 5 CHCs have been handed over to non-government organizations.
- Under the agreement, the government agreed to finance the entire gamut of PHC services in project area, with the proviso that these services are run on the same pattern as that in the government.
Mapping of expertise available for training
- With a view to build capacities, health training is planned with the involvement of various institutes of expertise, from both the public and private sector. As part of this initiative, mapping of the expertise available for training in private and non-governmental organizational sectors and to involve them in training (e.g. RCH training, training related to HIV/AIDS) is proposed. Efforts are also underway to involve and enable participation of the community in such training and ensure better sharing of information through community volunteers and National Social Service (NSS) students.
- Appointment of honoraries & part-time specialists from the private sector The Government has encouraged private practitioners to provide services in the public sector under “Samaydan scheme”. This scheme aims to ease the problem of vacancies of specialists in health and medical services. As part of this scheme, honorary and part-time specialists are being appointed.
- Urban Health Care Project This project aims to provide primary health care to urban slum population under the public private partnership through community based health volunteers in urban areas. Given the lack of infrastructure in urban areas, towns with less then one lakh population are proposed to be covered under this scheme.
The community-based health volunteers would be selected from local areas, will act as link between service providers and community. The towns having either CHC / PHC/ PPU / Urban Family Welfare Centre/
Trust hospital, would monitor their activities. They will be paid monthly honorarium as per the approved scheme.
- Contracting out of Information, Education & Communication (IEC) services
With an intention to pool together information available and bring a professional approach to behaviour change communication (BCC), services like IEC are being contracted out. Efforts are also underway to develop partnerships with various stakeholders like pharmaceutical company to ensure wider coverage. The IEC budget from various pharmaceutical companies is pooled together on a common basis and the agencies hired by the private sector are allocated the money for development of IEC material through a special sanction.
Such attempts at contracting-out are being tried out with respect to developing IEC material for malaria control especially for early diagnosis of malaria in RCH group, popularizing the use of impregnated bed nets and treatment of complicated malaria. The State Malaria Control Society scrutinizes the offers received and the agencies are selected after a committee has short-listed them.
Project under the PPP framework
1.Performance Management of CHC
Shamlaji Hospital located in tribal area of Sabarkantha district of Gujarat is managed by All India Movement for Seva. The promoter is All India Movement for Seva and Dept. of Health. The project rationale is that Govt. with limited resources had difficulties in running the hospital. The objectives of providing quality healthcare to the poor were not being met with. To enable the poor access quality healthcare services the government partnered with an NGO under a Performance Management framework to provide affordable and often free services to the poor and needy. The benefit is to Reaching out to the poorest of the poor and the traditionally backward tribal region.
2.Partnership with CBOs (Community based Organisations) for operation of CHCs and PHCs
Five CHCs and one PHC are being run by community based organizations. Govt. has been facing difficulties in running the CHCs and PHCs due to limited availability of resources (manpower, funds, equipments etc.). The operation is managed by the CBOs and the government provides earmarked funds to the CBOs.
3.Establishment of Regional Resource Centres
Centre for Health, Education, Training and Nutrition Awareness (CHETNA) has been actively supporting a total of 21 mother NGO’s working effectively to implement Reproductive and Child Program (RCH). The objective is to strengthen the capacities of MNGOs/Service NGOs (SNGOs)/ GO functionaries through technical support to build linkages with State Government for effective implementation of the RCH programme.
4.Tele Medicine Project
Sarva Swastha Abhiyan , an NGO has opened 10 centres in the five predominantly tribal areas- Idar, Prantij, Bardoli, Hansot and Mundra that will be connected through telemedicine to the super speciality hospitals at Ahmedabad, Nadiad, Vadodara and Surat
The objective is Promotion of better healthcare in rural areas by creation of supporting network of low cost with high quality tertiary care. The benefit is Outreach to inaccessible areas. Super speciality services made available to the poorest of the poor through use of modern-day technology
5.Govt. hospital management by private sector partners
Wockhardt Hospitals Group (WHG), along with the Government of Gujarat will conduct and manage the 275-bed Palanpur Civil General Hospital. In addition, Adani group shall manage the 300 bed G.K. general hospital, Bhuj. This would be a part of Corporate Social Responsibility plus running of a medical college in case of Adanis at Bhuj.
6.Emergency ambulance services (108)
Hyderabad-based Emergency Medical Research Institute (EMRI) with the Gujarat government takes care of road and fire accident victims on a 24-hour basis through the year by just dialling 108. The objective is Provision of emergency medial services for road and fire accidents through a centralized ambulance system. 40% deaths are instantaneous in case of accident. 30% deaths occur within hours of accident. Prevention of death is possible if treatment is provided within in an hour
7.Setting up of Educational facility
This includes development and improvement, of education, research, and policy formulation in the field of Public Health through the establishment of an Indian Institute of Public Health (IIPH), Gandhinagar. Proposed shelf of Projects over next 5 years
- Integrated healthcare townships (4 around 4 major cities. Aim to create at least 50,000 beds) Investment Rs 10,000 crores
- Centre for excellence in life sciences (at least 3 by 2020) - Develop distinct strengths in research, science and technology to stimulate a fast-growing and cohesive regional healthcare economy. Investment Rs 1500 crores.
- Centre for excellence in Knowledge Development and Information Technology for healthcare (2) - Develop a research platform for evolving the knowledge base in medical sciences and also to innovate IT based healthcare and healthcare management, outsourcing applications etc. –Rs 200 crores
- Centre for excellence in Indian system of medicine- Develop a research platform for exploring new frontiers in the Indian systems of medicine viz. homeopathy, ayurved, unani, siddha etc. –Rs 50 crores
- Centre for excellence in Pharmaceuticals - Develop a research platform for research and development in the pharmaceuticals space. –Rs 35 crores
- Develop a Medical University – Investment Rs 200 crores
A uniform structure of school education, the 10+2 system has been adopted by all the States and Union Territories of India. However, within the States and the UTs, there remains variations in the number of classes constituting the Primary, Upper Primary, High and Higher Secondary school stages, age for admission to class I, medium of instruction, public examinations, teaching of Hindi and English, number of working days in a year, academic session, vacation periods, fee structure, compulsory education etc. The education system, in Gujarat, with respect to schooling is divided into four distinct stages viz. Primary (Class I to IV), Upper Primary (Class V to VII), Secondary (Class VIII to X) and Higher Secondary (Class XI and XII). Higher and technical education is provided through universities and colleges in the general higher education category (arts, science and commerce) and technical education category (engineering, pharmacy, agricultural sciences etc.).
Any development oriented programme derives much of its strength from inherent legislative directives framed in the form of a policy. The education sector in Gujarat perhaps has not been shining to its potential due to the lack of a concerted policy direction. Much of the current system of education derives itself from the National Policy on Education, 1976. Though the constitution clearly mandates education as both a centre and state subject, there have been limited efforts in the state of Gujarat on framing a focused education policy to enable holistic development of education.
Gujarat ranks 9th on the Education Development Index (EDI); Planning and prepared by the National University of Educational Administration (NUEPA) , this index measures the performance of states on the Universalization of Elementary Education programme.
Though it is a significant leap from its 14th position not very long ago, it still points to a compelling need for making intensive efforts to bring about a change in the status of education in the state.
Education data of Gujarat
The primary and secondary/higher secondary education infrastructure available in Gujarat has been able to cope with the demand generated so far. While primary education has traditionally been, and continues to be, a government strong-hold, the secondary/higher secondary education is fast becoming a private sector forte. School education
Gujarat had an estimated 8.2 million children enrolled in the primary classes with the Gross Enrolment Ration (GER) touching almost 100%. There were about 2.77 million children enrolled in institutions imparting secondary and higher secondary education.
Both the government and the private sector are increasingly playing a larger role in ensuring that children are not left out of the education system for want of infrastructure.
Higher and technical education
Gujarat has traditionally been recognized for its entrepreneurial leanings and not for its ability to develop professionally trained human resources. This however, is likely to change very rapidly as the Government of Gujarat has embarked on a mission to make Gujarat an Education Hub for the country. The efforts are directed not only towards attracting students from other states within the country but also from other countries. Gujarat currently has about 20 universities of which 10 are private universities (6 already existing and 4 new have been approved and will commence operations soon).
Gujarat has over 900 institutions of higher learning and research which educate approximately 551,398 students. Gujarat has instituted approximately 34,323 engineering seats and approximately 47,753 diploma engineering seats. At the post-graduation (Masters) level approximately 10492 seats are available across various disciplines. Gujarat though has made tremendous progress in terms of industrial development and is considered to be one of the fastest developing states, the higher education system in Gujarat has been unable to deliver graduates fit to be readily employed in the market. While there has been improvement in the primary and secondary education sector, the higher education scenario needs further augmentation. However, the state government is taking aggressive steps to enhance both the infrastructure and quality of higher and technical education within the state.
The results of the process of improving retention and decreasing dropout rate from elementary level (Std. I - V) is encouraging. The dropout rate for elementary section decreased substantially from 35.40 percent in 1996-97 to 2.29 percent in 2008-09. Similarly the dropout rate for the standard I to VII has also decreased from 49.49 percent in 1996-97 to 8.92 percent in 2008-09.
The state government has initiated various drives to ensure that all children within the age group of 5-11 are enrolled into schools. Specific emphasis has also been laid to enroll girls in schools. Similarly the state government is also working towards improving the enrolment as well as the retention rates in Secondary and Higher Secondary classes.
Higher and technical education
The limited resources and opportunities available to the state administration for development of higher and technical education have led to the private sector venturing into education and providing a wide spectrum of market conscious courses. These institutions have largely been running on the self-financed mode and have been quite successful in attracting students who aspire to tap the markets in the ever expanding economy.
The government has also attempted to engage the private sector more actively in the non – formal modes of education. There have been initiatives relating to skill development and language skill improvement. These initiatives have been briefly discussed in the following sections.
Private Universities Bill
The State Assembly of Gujarat has recently passed the Private Universities Bill which allows the formation of private universities without having to pass legislation through the Assembly for the same.
An institution wanting to acquire the status of a University can apply to the department of Education for the same. The application is considered and evaluated by the department and if found in order, an amendment to the schedule of the Private Universities Bill is initiated.
By this measure, the time required for the approval process of formulating a University has been brought down to roughly 6 months. This will now enable the state to easily attract private sector investments in the education sector.
Instituting an Independent Regulator
The Education department is planning to institute an independent regulator for the higher and technical education sector. The regulator would oversee the functioning of various institutions within the state and will also act as a Grievance Redress mechanism for any issues arising in the sector. The regulator will keep a constant vigil on the quality of education being provided. This will help in de-bottlenecking the education sector in Gujarat and will also constitute a quality assurance mechanism in the state.
Society for Creation of Opportunities through proficiency in English (SCOPE)
The Society for Creation of Opportunities through proficiency in English (SCOPE) is a registered society formed by the Govt OF Gujarat with a specific purpose to enhance the proficiency in English among the Gujarat youth all over the State by imparting world-class quality training in practical business English.
Under this programme the state education department has partnered with private entities such as Cambridge for imparting English language skills among the graduates. So far about 70,000 persons are trained under this scheme.
Gujarat Knowledge Society (GKS)
Gujarat Knowledge Society (GKS) is a society formed by the Govt. of Gujarat to prepare the youth for the knowledge based economy and society so as to stimulate creation of world class knowledge resources by developing new competencies in skills. It uses PPP model in which demand- driven skill training programmes are delivered by private training agencies in the classrooms & computer labs of existing Government schools & colleges.
The Director of Technical Education has been appointed as the CEO of the GKS. The GKS has partnered with 18 different institutions to impart both IT based and non-IT based courses to graduates.
Gujarat technological university
GTU has been established in the year 2007 to cover Technical Education of the State under one umbrella so as to have a common academic setup all over the Gujarat. The university will also seek to improve upon the curriculum of various disciplines so as to serve the human race better.
A Core advisory group including experts from IIT, Bombay, IIT, Delhi and other prominent educational institutes is working on setting up norms, syllabus, examination and evaluation system, staff training, etc. The GTU is likely to affiliate all Engg. / Pharmacy / MCA / MBA colleges from the year 2009-10. A budget allocation of Rs.20.94 Crores has been provided out of which Rs. 6 crores is earmarked for civil works for 2008-09.
The plan budget by the Education Department for the year 2009-10 is estimated to be approximately Rs. 1600 crores . This is in addition to non- plan expenditure of about Rs. 6000 Crores in education. This is a big push for the state; typically, budgetary allocation for education has been paltry.
The Department estimates that approximately 50% of this i.e. Rs. 800 crores is likely to be directed towards Capital expenditure. This expenditure would largely be towards building new institutions, colleges and various other facilities. Demand for education – gauging investments required
Demand for school education was established using cohort population projections till the year 2021. The number of students who will be in the age groups 4 to 16 years were projected and the total was utilized to make demand projections.
According to projections there will be approximately 11.8 million children in 2021 in the age group of 4 to 16 years. This presents a huge opportunity for investments in the school education space.
The above figures are staggering when seen in the context of the education infrastructure required to provide quality education to all the children. This in itself represents a substantially large investment opportunity.
Higher and technical education
The demand for higher and technical education has been estimated using the cohort projections for the age group of 17 to 20 to estimate the demand for engineering seats by 2021.
To enable itself in becoming an education hub, Gujarat will have to first compete with some of the states within the country. For instance, Andhra Pradesh alone currently has about 145000 seats for engineering.
If Gujarat is to achieve this number of seats, it will have to add about 122,000 seats. This would mean that Gujarat will need over 160 colleges with 750 seats each to be established by the year 2021. Shelf of projects
The state government has been investing aggressively in creating education infrastructure. Building schools have been a critical part of this strategy.
Further the education department plans to build about 12 colleges and 9 polytechnics on a Public Private Partnership basis. The department is also in the process of acquiring land for creating knowledge parks.
As part of the Blueprint for Investment in Gujarat, 2020, two Knowledge Corridors have been proposed. These corridors have been assumed to be spread over an area of 1500 acres each. Besides this, the following have been proposed:
- Maritime, retail management and aviation universities
- Various Centres of Excellence in an array of disciplines viz. biotechnology, nutraceuticals, nanotechnology, space research, clean technologies etc.
Capacity Building in PPPs in Gujarat
GIDB is imparting training programme for the State Government and it agencies officer on Public Private Partnership (PPP). The programmes are conducted in consultation with IL&FS and CRISIL. It was felt by GIDB that process of development of infrastructure projects includes important component of undertaking feasibility study, project and financial structuring, risk management, bidding process, draft and model concession agreement, therefore, it is very important to give exposure to the State Government and it agency officers on public private partnership. The above programmes are mainly focused on fundamental principles of PPP, various models, developer selection process, financial structuring and sources of finance, feasibility studies and various component of Concession Agreement.
GIDB organizes courses of 3 days/2 days duration on the “Private Sector Participation – it Principles and Practices” for the officers of the State Government and it agencies. The objective is to give exposure to them on the technical, financial and legal aspects of PPP projects. The programme is divided into two modules (1) Basic Programme and (2) Advance Programme. The detailed course material is developed for both the courses. The above courses mainly includes following component of PPP.
- Introduction of GID Act.
- Formats of PPP
- Selection of Developer process.
- Financial structuring and fundamentals of Internal Rate of Return.
- Sources of financing the project.
- Risk allocation and mitigation.
- Case studies on various projects.
- Concession designing
- Regulatory mechanism.
Government of India has recently announced schemes/ policies/ guidelines to facilitate PPP projects across infrastructure sectors. On each important area of PPP, GOI has announced various instruments in the form of policies/guidelines etc. to aid, smoothen and faster the process of PPP. Such instruments are as follows ;
- Viability Gap Fund Scheme
- Guideline for Pre-qualification of developer Model RFQ
- Guideline for Request for Proposal ( Model RFP )
- Appointment of Transaction Advisor
- Public Private Partnership – Creating an Enabling Environment for State Projects.
- Guidelines on Project preparation facility for PPP projects
- Model Concession Agreement (s)
It is also felt that the officers of the State Government and it agencies should also be given exposure on the essence of the above schemes and guidelines. Keeping in view the broad area emphasized under the above schemes/guidelines , circulation of the above documents to concerned Govt. agencies may not be a sufficient effort to explain them the nitty gritty of the above instruments. Therefore, the same are explained in detail in the capacity building programmes.
GIDB organize such training programme once a month. The interested State Government or its agency may send nomination through their respective department/agency to following address. The schedule of the training is placed on the web site as soon as it is finalized, to enable the officers to send their nomination in a prescribed performa. Challenges and Opportunities in Infrastructure Development
The biggest challenge is that there is a huge requirement of Infrastructure investment across sectors by 2020, as per the Gujarat’s infrastructure agenda, Blue print for Infrastructure in Gujarat, 2020- to the tune of Rs 11,25,000 crores. This is an opportunity for the private sector to invest in the shelf of projects developed across sectors.
In order to implement such a huge scale of investment program, Government may follow the action plan as under:
1.Emphasis on Land procurement and management for easier project implementation. 2.Institutionalise state government funding as part of five year planning exercise. 3.Monitor & recommend actions for implementation through state and departmental tasks 4.Facilitate and nurture actions flowing from the Infrastructure Action Agenda 5.Capacity building exercise at regular intervals for Institutions involved in projects through private sector participation in the areas of Project development , Contract administration and Project implementation and management 6.Establishment of a Private Equity fund and a Debt fund for Project funding.