Legal framework - PPP
Private sector participation is an area, which is relatively uncharted even though the State has fairly large number of privatised infrastructure facilities. It has been the experience that uncertain and vague policy framework creates ambiguity in the minds of creditors, developers and decision-makers in the Government.
Clear-cut legal framework not only enables quick decisions on the projects but also reduces the risk attached by the developers and financiers. It thus makes the State a better destination for investment. Reducing uncertainties would reduce costs as well as cut time.
Therefore, based upon international best practices and experience of projects within the State and the country, Government of Gujarat has put in place a road map for private sector participation through this statute of the Gujarat Infrastructure Development Act, 1999.
The Act provides legal framework for private sector participation in financing, construction, operation and maintenance of infrastructure projects in the State. This law is based upon clear-cut process along the project cycle, required for timely and effective completion of infrastructure projects. The sectors covered by the statute are within the ambit of executive authority, of the State Government.
