Channelization of Potential Private Investment for Infrastructure Development in Orissa : A Public Private Partnership Approach

Orissa continues to be the poorest amid all major states of India with 40% of the state's population living below the poverty line. According to the Economic Survey for 2007-08, rural poverty in the state is one of the highest with a large segment of the scheduled tribe and caste population in western and southern Orissa still living in a shaky state, with a very stumpy financially viable stand. However, the survey demonstrates that recognized undiversified economy, low investment and recurrent natural calamities are the foremost grounds for the state's stunted economy and sluggish economic growth. Since infrastructure is the first step of the development ladder, investment on infrastructure is to be prioritized. While public investment of the state has been unable to cater to the needs, the private investment in the state is not adequate to abridge the gap and further private investors of the state are very much skeptical about their security. Therefore, a Public Private Partnership (PPP) approach is a must in this regard. Although the state government did make a noteworthy policy move to persuade private sector investment, the process of industrialization continues to dawdle. Thus, a rigor is necessary to explore and tap all possible sources of private investment, extending conducive atmosphere to the investors. Therefore, this paper focuses on the channelization of potential investment for infrastructure development in Orissa through PPP