Union Cabinet, chaired
by Prime Minister Narendra Modi, on January 6 approved the proposal for
taking up Hybrid Annuity based Public Private Partnership (PPP) model
under Namami Gange Programme which aims to reform the wastewater sector
Marking a paradigm shift in the implementation mode, Hybrid Annuity
based Public Private Partnership (PPP) model will now be adopted to
ensure performance, efficiency, viability and sustainability.
In this model, a part of the capital investment (upto 40%) will be paid
by government through construction linked milestones and the balance
through an annuity over the contract duration up to 20 years.
Government will be establishing a Special Purpose Vehicle (SPV) to plan,
structure, procure concessionaires, monitor implementation of such PPP
projects and develop market for treated waste water through appropriate
policy advocacy under overall guidance of National Mission for Clean
The SPV would enter into a Tripartite Memorandum of Agreement (MoA) with
participating State Governments and concerned Urban Local Bodies (ULBs)
for taking up individual projects.
These MoAs will aim at introducing reforms and regulatory measures for
recovery of user charges on Polluters Pay principle, restrictions on
usage of ground & fresh water for non-potable purposes through stricter
monitoring and guidelines that promote re¬use of treated wastewater.
Development of the market for treated water will lead to reduced demand
on riverine fresh-water and will result in enhanced flows in river Ganga.
Cabinet's approval addresses issues that acted as road blocks for all
previous efforts to clean river Ganga while paving way for reform of the
wastewater sector in India. It will also facilitate implementation of
projects in a fast track mode mode and ensure effective utilisation of
funds released under 100% funded 'Namami Gange' - central sector scheme.