invest rajasthan
About BIP
New Rajasthan


Public Private Partnership
  Facilitation Framework
  Roads
  Urban Infrastructure
  Industries
  Information Technology
  Power
  School Education
  College Education
  Technical Education
  Agriculture and Rural Development
  Bhamashah Financial Empowerment Scheme
  Medical & Health
  Water Supply
  Major Projects under Consideration


Public Private Partnership


Infrastructure is critical to provide an impetus to the economy, in terms of attracting investments and subsequent GDP growth. Good infrastructure raises productivity, lowers production costs and requires upgradation and expansion at regular intervals, to accommodate growth. It can be established that infrastructure capacity grows step for step with economic output. Reportedly, a one percent increase in the stock of infrastructure is associated with a one percent increase in Gross Domestic Product (GDP) across all countries.
Government of Rajasthan recognises the need to augment assets and services in the infrastructure sector. Investments in the core infrastructure sector are primarily considered for improving the overall attractiveness of the State and facilitate investment flows.

Facilitation Framework for Private Sector Participation
Due to the requirement of heavy investments and the corresponding paucity of funds available with the State Government, private sector participation in infrastructure projects is essential to secure investments. In addition, private sector participation will facilitate improvement in the service quality and develop models for operation and maintenance practices in the infrastructure sector.
In order to provide necessary administrative framework for developing projects, prior to seeking private sector resources, the State Government has set up the following mechanism:

  • The Board of Infrastructure Development and Investment Promotion (BIDI) has been set up to facilitate approval of concessions and clearances for large-scale infrastructure projects.
  • Economic Policy & Reforms Council (EPRC) comprising of leading corporations, eminent educationists, specialists and economists, with the Chief Minister as its chairperson, has been constituted which acts as an advisory.
  • Empowered Committee on Infrastructure Development (ECID) under the chairmanship of Chief Secretary has jurisdiction over all projects developed under the Public-Private Partnership (PPP) format. It is the nodal body for conceptualising, approving projects and resolving all inter-departmental issues and providing necessary directions in this regard.
  • Rajasthan Project Development Fund (RPDF) has been created with contribution from Government of Rajasthan (Rs4 crore), IL&FS (Rs25 lakhs) and HDFC (Rs25 lakhs) for meeting the costs and expenses relating to conducting feasibility studies for project development work for identified projects.
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Focus Areas

The key focus of the State Government would be to invite private sector investment in Roads, Power, Tourism, Urban Infrastructure, Industrial Infrastructure etc. The State has also opened social sectors such as Education, Health, Drinking Water, etc for private sector investment. A major initiative in this regard has been the setting up of a dedicated project development company, PDCOR Limited, in association with Infrastructure Leasing & Financial Services Limited (IL&FS). The primary mandate of PDCOR is to structure and attract private sector investment into various infrastructure projects in the State.

Completed / On-Going Projects

Roads
BOT Projects: Thirty road projects of an estimated cost of Rs389.71 crores have been completed under BOT policy, 3 projects of Rs72.96 crores are under construction and 2 projects of Rs60.32 crores are in the pipeline.

Rajasthan Mega Highways Project (I):
For the improvement and maintenance of 1053 km of road, an investment of Rs1500 crore is under way. This project is being implemented by RIDCOR, a JV company of Government of Rajasthan and IL&FS. The company would also be responsible for operations and maintenance of the project roads.TOP

Urban Infrastructure
Solid Waste Management - M/s Grasim India Ltd. has constructed an Rs15 crore waste conversion plant in Jaipur to prepare fuel pellets. The Grasim experiment is being replicated in three other cities of Rajasthan, viz. Ajmer, Bikaner and Udaipur.
Common Bio-medical Waste Treatment Facility Plant exists in Bikaner, Jaipur, Hanumangarh, Jodhpur, Alwar, Sawai Madhopur and Ajmer. Plants at Jhalawar, Sikar, Kota, Udaipur (Addl.) and Jalore are in the pipeline. These plants are being established under the PPP mode on DBOOT basis.

Bus Rapid Transit System (BRTS)
- BRTS project is being developed under JNNURM, under which roadwork of the project will be done through EPC contract and the Bus Operations through PPP framework. The total estimated cost of the project is Rs783 crores.

Industries

Special Economic Zones (SEZs) - A multi-product SEZ is being developed by Mahindra World City (Jaipur) Ltd., a joint venture of Mahindra Gesco and RIICO. This Public-Private Partnership project envisages an investment of Rs1109 crores in phases. The MWCJL has started construction work at site for development of IT SEZ. The MWCJL has also started work on a multi-tenanted building for a built up space of 2 lakh sq.ft. Infosys has also started the construction of their building for their BPO operations.
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Indian Institute of Crafts & Design - Indian Institute of Crafts and Design, an autonomous institute of excellence set up by the Government of Rajasthan to act as a catalyst for the crafts sector, is being managed by the Ambuja Educational Institute (AEI) under the Public Private Partnership (PPP) model.

Information Technology
e-Mitra Programme - This is an integrated e-platform for providing information and public utility services, pertaining to various government departments, to the urban and rural population. Currently, over 700 kiosks are operational. This programme is under state-wide implementation through Public-Private Partnership.

Power
Power Generation - Raj West Power Limited, a wholly owned subsidiary of JSWEL is putting a 1000 MW (8 Units of 125 MW each) lignite-based pit head power plant at Bhadresh in Barmer District. The estimated cost of the project is Rs4804 crores. Lignite will be made available from the nearby Jalipa and Kapurdi mines. For this purpose, a JV company ? Barmer Lignite Mining Company Limited ? has been set up between RSMML and Raj West Power Limited. First unit is likely to be synchronized by October 2008.
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Wind Energy - Wind energy power plants with 448.995 MW of capacity have been installed so far through private investment. Other power plants with 204.8 MW of capacity are under currently execution.

Biomass Power Plants - Five biomass-based power plants with an aggregate capacity of 46.3 MW have been commissioned in the State; with an estimated investment of Rs208.35 crores. All these plants are in the private sector. Three projects of 37.5 MW capacities are under implementation.

School Education
Rajasthan Education Initiative - This Initiative is an umbrella under which innovative, multi-stakeholder partnerships are catalyzed by engaging the global and local private sector, foundations and charitable organisations and other grass roots level NGOs in support of Rajasthan's education objectives. The REI focuses on improving the delivery of educational services, and in particular on promoting equitable access, enrolment and retention of children in schools, reducing gender disparities, promoting skill development and enhancing learning levels. 26 MoUs have been signed so far with co-partners.

Mid-day-meal Scheme - For private sector participation in the mid-day meal programme, a PPP policy is under operation. Presently, 7.27 lakh children in 5568 schools are being supplied hot cooked meals prepared under hygienic conditions in mechanised centralized kitchens, set up by charitable trusts and NGOs like Akshaya Patra Foundation, Naandi Foundation, QRG Foundation, Adamya Chetna Trust, ISKCON etc. For providing hot cooked meals to another 2.70 lakh children in 2370 schools, 7 projects are underway.
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College Education
Colleges - Two colleges for women education have been set up at Dholpur and Rajsamand under the PPP mode. A college at Asind will be opened during later this year. Besides these, a proposal for opening of 27 colleges in various tehsils is under consideration.

Women Hostels
- A proposal for constructing 25 hostels in government-run colleges for women is under consideration. Land and building cost will be provided by State Government and all recurring and non-recurring expenditure will be borne by private sector.

Knowledge Centres
- Six knowledge centres have been established in colleges and another 14 are under implementation.
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Technical Education
Polytechnic Colleges - For the identified 12 lagging districts which do not have any polytechnic college for women, private investors have been selected and required land has been allotted. Out of these 12 polytechnics colleges, 4 have been initiated operations in the 2007-08 fiscal, in rented spaces. Building construction is underway in 12 districts. AICTE approval for 11 polytechnic colleges has been received. A private investor has also been selected for the newly created Pratapgarh district and LOI is being issued. The establishment of additional polytechnic colleges at sub division headquarters has been approved. For all the identified 23 lagging sub divisions, private investors have been selected and land allotment is under process. All investors have applied for AICTE approval and LOI is being issued.

Engineering Colleges
- Private investors have been selected for 18 lagging districts which do not have any engineering college. Land has been allotted in 8 districts and is under process for the remaining 10 districts. Private investors have also been selected for newly created Pratapgarh district.

ITIs
- Out of the 113 identified lagging blocks, private investors have been selected for establishment of Industrial Training Institutes (ITIs) in 109 blocks. 54 investors have established/started the ITC and another 33 investors are expected to start or establish in the next fiscal. Land allotment is under process.
  • Up-gradation of ITIs - Seventeen ITIs have been selected under PPP mode in 2007-08 for up-gradation into 'Centre of Excellence' with World Bank assistance.
  • Establishment of Mahila ITI wing - Thirteen government ITIs at district headquarters have been selected to establish Mahila ITI wings.
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Agriculture and Rural Development
Animal Husbandry - 300 Integrated Livestock Development Centres will be started by J.K. Trust. The Trust will operate these centres for the next 5 years. Facilities like artificial insemination, castration, immunization etc. will be provided in remote areas of Bikaner and Jodhpur districts.

Integrated Waste-land Development Program - With the objective of encouraging Public-Private Partnership, a MoU was signed with ITC Gramin Vikas Trust in March 2007, under which development works in Kalyanpura Watershed Development Program in Panchayat Samiti Mandalgarh District Bhilwara have been started under Integrated Wasteland Development Program. ITC Gramin Vikas Trust will spend an equivalent amount to the sanctioned project cost of Rs3 crores. Under the project, 5000 hectare area will be treated during 5 years.

Bhamashah Financial Empowerment Scheme

This is a financial inclusion scheme facilitating women empowerment and creation of banking infrastructure to provide banking facilities to identified population, pre-dominantly BPL families. Under the scheme, biometric smart cards will be issued to these families, which will be provided services through setting up of backbone and the Points of Service (PoS), 12000-15000 PoS for banking and 1500-2000 PoS for health insurance service. The project is being set up under a Build, Operate and Transfer (BOT) mode. A private developer has been selected through a competitive bidding process.
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Medical & Health
Lifeline Fluid Store - Government of Rajasthan has initiated Lifeline Fluid Stores in Medical College Hospitals of the State. These stores have made available medicines to poor patients at lower rates compared to pharmaceutical stores. For example, the charges for IV fluids came down from Rs50 per bottle to Rs6 per bottle. Under this model, the Medicare Relief Society of the hospital runs counters for selling medicines by involving a private partner who supplies manpower and operates these counters. The Medicare Relief Society keeps a bare minimum margin of profit, thereby protecting the interests of patients belonging to low-income group.

Privatization of costly diagnostics like CT / MRI - Under this scheme, State Government provides the private operator with space in the Medical College Hospital for installing diagnostic equipments like CT / MRI machines. The private operator installs and operates the machines, but on charges decided by the Government; 20% BPL patients have to be tested free. This has proved to be successful as the rates of MRI have come down from Rs6000 to Rs2200 and CT scan from Rs2300 to Rs700. Private diagnostic centres outside hospitals were forced to bring down the rates. These machines work for 24hours and have hardly reported any damages or breakdowns. Privatization of costly therapeutic machines like Linear Accelerators -Encouraged by the success of privatization of diagnostics, the policy has been expanded to cover therapeutics like Linear Accelerators. Under this scheme, a Private Operator is provided with space within Hospital premises. It is the private operator's responsibility to undertake civil works, operate and install the machine, and to obtain necessary clearances from AERB etc. He can only charge the rates as decided by the State Government and to he has to treat 20% BPL patients free of cost. Ancillary Services like cleaning, security and laundry have also been privatized in many hospitals.

The policy to Promote Private Investment in Health Care Facilities has attracted 24 investors with potential investment of around Rs5000 crores. These investors are required to keep 10% beds for BPL patients who will be treated free and will pay only 25% for drugs and diagnostics.
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Water Supply
Desalination Project, Matasukh - Setting up of Rs300 crores-brackish water desalination plant, at Kasnau-Matasukh lignite mines, Nagaur, on DBOOT basis is underway. The treated water conforming to WHO standards will be supplied to the water deficient villages in and around Nagaur. The payment shall be based on the water processed and supplied at ex works. Water distribution will be the responsibility of RSMML in association with local authorities and PHED.

Major Projects under Consideration
Mega Highways Project II, Development of International Convention Centre and Golf Course at Jaipur, Water Supply projects on conventional BOT/Annuity basis, Computer Education on Wheels, Integrated automated border check posts, Development and running of the District Hospital and setting up a Medical College in Jhalawar, Restoration and Re-development of Nazool Properties, Running of Ambulances, Handing over PHCs and CHCs to private parties, Raj State Wide Area Network (RajSWAN), Establishment of Common Service Centres, Establishment of Ex-servicemen Placement Company etc. are under consideration.


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