Odisha Unveils New PPP Policy 2023 to in Public Infrastructure
ECONOMY & POLICY

Odisha Unveils New PPP Policy 2023 to in Public Infrastructure

The Odisha government has issued a fresh Public Private Partnership (PPP) Policy for the year 2023 with the aim of enticing private investments in the development of public infrastructure. This new policy, announced by the state Finance Department, is applicable to a wide range of infrastructure projects encompassing roads, bridges, ports, railways, airports, irrigation, helipads, industrial parks, logistic hubs, water supply, power, tourism, sports, healthcare, education, and inland waterways executed through the PPP framework.

To enhance the commercial viability of these projects and encourage private sector involvement, the government has introduced a provision for imposing user fees, as per an official notification. According to the policy, projects with a capital expenditure of up to Rs 10 crore will receive approval from the director of the state government's PPP Cell, provided they do not require support from the Odisha Infrastructure Development Fund (OIDF) or the state Viability Gap Funding (VGF).

For effective oversight, the government has established the Empowered Committee on Infrastructure (ECI), headed by the chief secretary. The ECI will grant approval for PPP projects ranging from Rs 10 crore to Rs 500 crore. For proposals exceeding Rs 500 crore, the ECI will present its recommendations to the High-Level Clearance Authority (HILCA), presided over by the chief minister, for final approval.

At the district level, a PPP committee led by the district collector will be instituted to coordinate and facilitate the implementation of infrastructure projects under the PPP mode.

The policy places a particular emphasis on mining areas, aiming to leverage existing funding mechanisms and institutional structures such as the District Mineral Foundation (DMF) and the Odisha Mineral Bearing Areas Development Corporation (OMBADC) to enhance infrastructure in regions impacted by mining activities.

In addition, Viability Gap Funding (VGF) from various central government schemes will be utilized to ensure the viability of PPP projects. The state government will contribute the remaining portion of the viability gap, as determined through open bidding, to support the implementation of critical infrastructure projects.

Furthermore, the scope of OIDF has been expanded, enabling its utilization for technical and financial pre-feasibility and feasibility studies, report preparation, bid document creation, and other necessary activities preceding the initiation of proposed infrastructure projects.

See also:
Finance ministry urges identifying projects for private partnerships
India to push for norms on digital public infra

The Odisha government has issued a fresh Public Private Partnership (PPP) Policy for the year 2023 with the aim of enticing private investments in the development of public infrastructure. This new policy, announced by the state Finance Department, is applicable to a wide range of infrastructure projects encompassing roads, bridges, ports, railways, airports, irrigation, helipads, industrial parks, logistic hubs, water supply, power, tourism, sports, healthcare, education, and inland waterways executed through the PPP framework. To enhance the commercial viability of these projects and encourage private sector involvement, the government has introduced a provision for imposing user fees, as per an official notification. According to the policy, projects with a capital expenditure of up to Rs 10 crore will receive approval from the director of the state government's PPP Cell, provided they do not require support from the Odisha Infrastructure Development Fund (OIDF) or the state Viability Gap Funding (VGF). For effective oversight, the government has established the Empowered Committee on Infrastructure (ECI), headed by the chief secretary. The ECI will grant approval for PPP projects ranging from Rs 10 crore to Rs 500 crore. For proposals exceeding Rs 500 crore, the ECI will present its recommendations to the High-Level Clearance Authority (HILCA), presided over by the chief minister, for final approval. At the district level, a PPP committee led by the district collector will be instituted to coordinate and facilitate the implementation of infrastructure projects under the PPP mode. The policy places a particular emphasis on mining areas, aiming to leverage existing funding mechanisms and institutional structures such as the District Mineral Foundation (DMF) and the Odisha Mineral Bearing Areas Development Corporation (OMBADC) to enhance infrastructure in regions impacted by mining activities. In addition, Viability Gap Funding (VGF) from various central government schemes will be utilized to ensure the viability of PPP projects. The state government will contribute the remaining portion of the viability gap, as determined through open bidding, to support the implementation of critical infrastructure projects. Furthermore, the scope of OIDF has been expanded, enabling its utilization for technical and financial pre-feasibility and feasibility studies, report preparation, bid document creation, and other necessary activities preceding the initiation of proposed infrastructure projects. See also: Finance ministry urges identifying projects for private partnershipsIndia to push for norms on digital public infra

Next Story
Infrastructure Energy

Apollo Green Energy targets Rs 100 billion in renewables

Apollo Green Energy Limited (AGEL), a subsidiary of Apollo International Group, is set to grow its renewable energy portfolio to Rs 100 billion by 2025, with plans for an initial public offering (IPO) to fuel this expansion. AGEL currently holds an order book of Rs 35 billion and manages Rs 25 billion in solar projects across several states. Operating in eight states, AGEL’s portfolio includes 400 MW of solar power installations and a Rs 7 billion Flue Gas Desulfurization (FGD) project aimed at reducing emissions in power generation. These projects support India’s ambitious target of reac..

Next Story
Infrastructure Transport

Kolkata Metro’s Orange Line Phase II deadline moved to March 2025

The completion date for the Orange Line's Phase II extension, stretching from Ruby to Sector V, has been shifted to March 2025. Rail Vikas Nigam Ltd. (RVNL), the agency overseeing the project, initially aimed for a December 2024 deadline but cited a delay in bridging an 800-meter viaduct gap at Chingrighata as the reason for the revised schedule. Work to bridge an additional 125-meter gap at Metropolitan is ongoing. Despite land challenges at locations such as Tagore Park, Chingrighata, and Nicco Park, the corridor received safety approval from the Commission of Railway Safety (CRS) for opera..

Next Story
Infrastructure Energy

Solar efficiency, cost cuts vital for energy transition: Pralhad Joshi

Union Minister for New and Renewable Energy, Pralhad Joshi, emphasised the global focus on advancing solar technology to achieve significant cost reductions and efficiency gains during a conference on clean energy transition. As President of the International Solar Alliance (ISA), he remarked, “The world is united in the energy transition, harnessing global efforts.” Joshi highlighted the need for more efficient solar technology, stating, “Traditional solar panels typically convert only 15-20% of sunlight to electricity, but innovations like bifacial panels and solar paint are increasin..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000