The Union Budget lays increased focus on Public-Private Partnership (PPP) mode for improvement of last mile connectivity that would eventually lead to a drastic reduction in logistics cost and pave way for sustainable growth.
While presenting the Union Budget on Wednesday, Union Finance Minister Arun Jaitley said a Metro Rail Act will be enacted by rationalising the existing laws. This will facilitate greater private participation and investment in construction and operation.
Also, select airports in Tier-II cities will be taken up for operation and maintenance in the Public Private Partnership mode.
The Airports Authority of India Act will be amended to enable effective monetisation of assets.
The resources, so raised, will be utilised for airport upgradation.
Most of the infrastructure projects will be developed in the PPP mode for construction of new roads, improvement of existing roads and coastal connectivity.
Welcoming the Centre’s move on spending huge sums on infrastructure development, experts in the logistics sector said the public private partnership could play a crucial role as it offers tremendous scope for sustainable growth.
