Nine private firms selected for PURA project

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They will be given flexibility to identify and select the Gram Panchayat for undertaking the Provision of Urban Amenities in Rural Areas projects

Oct 10, 2010

By Suresh K Tiwary

New Delhi: Nine private sector companies have bid for 15 pilot projects under the Provision of Urban Amenities in Rural Areas (PURA) scheme, Rural Development Ministry Secretary BK Sinha said here on Monday.

The initiative taken by the Ministry of Rural Development to kick start the Public-Private Partnership in rural infrastructure development has received enthusiastic response from the leading houses in the corporate Sector, he said.

The nine companies that have been finally short-listed are in the area of infrastructure development with strong rural and community mobilisation experience either directly or through their consortium partners.

These companies include names like Jindal Steel & Power, IL&FS, Infrastructure Kerala,  Marg., Buldana Urban cooperative Society .,  A2Z Maintenance & Engg. Services., Megha Engineering Infrastructure, Srei Infrastructure Finance and SVEC.

The selection has been done through an open competitive technical bidding process with rigorous qualification and evaluation criteria, the Secretary told reporters here.

In the pilot phase, the private developer is given flexibility to identify and select the Gram Panchayat for undertaking PURA projects based on their familiarity with the area or past experience of working at the grassroots level.

“However, as the consent of the concerned Panchayats and no objection from the state governments is mandatory, the selection would reflect the concurrence of all the stakeholders. It is expected that a scheme like PURA wherein all related schemes for rural infrastructure are being converged for a synchronised delivery for a period of 10 years in project mode shall maximise socio-economic impact,” he added.

The average size of the projects is about Rs 100 crore with the total investment around Rs 1,300 crore. The average grant sought is 35 per cent and thus in all the projects would be about Rs. 425 crore.

He however said that since the total funds available to the Ministry during the 12th Plan are to the extent of Rs 248 crore the number of pilot projects may need to be reduced.  However the Ministry is confident that the additional funds would be organised in consultation with the Planning Commission and the Finance Ministry to take up all the projects in due course, he added.