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Construction : Web Exclusive | June 2013 | Source : Construction Update

Maharashtra govt frames new PPP policy

The urban development department of the Maharashtra government framed a new policy in order to address issues, such as settling of claims and risk-sharing, arising out of delays in PPP (public private partnership) projects projects.

The draft policy has been forwarded to the finance department for modifications. The policy was framed in order to rule out the possibility of disputes at a later stage of a project and also to put several works on track for completion on time.

This initiative is expected to put in place a new law for speedy completion of PPP works.

Besides, the new policy may also ensure timely completion and smooth operation of projects and also fix accountability, financial or any other, on the contractor or concessionaire in case of any deviation from the original contract agreement at a later stage.

In the past, several major projects have faced post-contract management issues, such as fare hike, cost escalation, due to delays and claims settlement by the state.

Maharashtra has been struggling to complete major projects in the absence of an effective PPP policy framework.

Major projects, such as Metro-I, Metro-II, Churchgate-Virar Elevated Rail Corridor and the shelved Worli-Haji Ali Sea Link, have all faced post-tender issues with the concessionaire raising needless demands and holding the state at ransom.

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