After the National Highways Authority of India (NHAI), the shipping ministry also feels it can do without the public-private partnership appraisal committee (PPP-AC) in the finance ministry.

According to government officials, the shipping ministry is seeking exemption from taking projects to the committee and is of the opinion that the central guidelines of 1996 for private sector investment in ports are comprehensive enough to deal with PPP projects.

The 1996 guidelines allow private sector participation in leasing out existing assets of ports, construction of additional assets, leasing of equipment for port handling and leasing of floating craft from the private sector, pilotage and captive facilities for port-based industries. The nodal agency for carrying forward all such projects was the shipping ministry.

But the finance ministry has a different opinion. A ministry official said, “While the funds used for creation of assets may be private, the assets themselves are in the public sector. We feel it is essential to ensure that the assets are built at the right cost.”

The NHAI and the road transport & highways department have had problems with the PPP-AC. The committee, they feel, will only lead to greater delays in awarding projects. The NHAI has, in fact, sought greater autonomy in awarding road projects on a build-operate-transfer basis by having a PPP cell to clear such projects.

Meanwhile, the shipping ministry has forwarded four port development projects to the PPP-AC for clearance. It is, however, expecting a solution since it is looking for private sector investment for 10 port projects this fiscal and nine in the next.