The Puducherry government has notified “Puducherry Public-Private Partnership Policy for Infrastructure Development, 2026” to create a policy framework for private sector participation in construction, infrastructure development, and maintenance of public assets.
“The Public-Private Partnership (PPP) arrangement enables the government to collaborate with the private sector to design, finance, develop, operate, and maintain public infrastructure assets, public buildings and service-oriented construction projects through structured contractual frameworks. The partnership helps in creating opportunities to mobilise private capital, improve project delivery timelines, enhance service quality and lifecycle efficiency of infrastructure projects,” the notification said.
A first
“Hitherto, we didn’t have a policy framework to engage private partners in major infrastructure development projects, development of industrial parks and utilisation of public assets. Moreover, a clear-cut policy direction will help us in reviving financially stressed non-operational public assets, including corporations, mills, cooperative societies and industrial establishments,” an official told The Hindu.
Another official said it has become necessary to frame a policy for involving private players as there are major infrastructure projects in the pipeline, including the two Special Economic Zones sanctioned by the Central government, for implementation in Puducherry. The government was also considering various options in terms of utilising the defunct public-sector enterprises, including textile mills, for job creation and economic growth in the region. Then, there are also plans to execute several high-value public utility infrastructure projects in the coming months, he added.
PPP cell
For efficient implementation of the policy directive, the official said that a PPP cell will be established at the Puducherry Industrial Promotion Development and Investment Corporation Limited (PIPDIC). The cell, which will function under the direct supervision of the Managing Director of PIPDIC, will include professionals with expertise in infrastructure finance, engineering, project management, legal structuring, and procurement.
“We are in the process of constituting the cell. A Request for Proposal will be issued by July 31, and by mid-September, we will constitute the cell. The cell will serve as the technical and operational arm for all PPP initiatives within Industrial Estates across the Union Territory. It will prepare a list of potential PPP projects by getting inputs from various government departments and industry bodies,” said the official.
The cell will be tasked with the responsibility of conducting feasibility studies for identified projects, initiating project preparation, tender processing, conducting pre-bid meetings, evaluating bids and preparing evaluation reports. However, all approvals relating to bid documents, evaluation reports and award of contract will be vested with the PPP Board, which will also be constituted under PIPDIC. The board will be chaired by the Chief Secretary and will have Secretaries as key members.
Periodic review
“The board will have overarching powers. It will be responsible for overall policy direction for PPP projects within industrial estates, approving project concepts, feasibility studies and reviewing/approving procurement documents and concession agreements. The board will also periodically review PPP project implementation,” he said.
According to the official, one of the important aspects of the policy was that any private firm or individual could approach the cell with a concept note for a potential project within an Industrial Estate. If the project was suitable, the cell could initiate the process and place it before the PPP Board for approval. There will be no restriction on project size, the official said.
