1. The Federation of Andhra Pradesh Chambers of Commerce and Industry
Federation House, 11-6-841, Red Hills, Hyderabad 500004
Provision of Urban Amenities in Rural Areas (PURA) Scheme
NATIONAL SEMINAR & EXHIBITION ON
RURAL DEVELOPMENT & PURA
Dr. N. SaiBhaskar Reddy 8.6.11
CEO, GEO | http://e-geo.org

2. PURA
Mission
Holistic and accelerated development of compact areas around a potential growth centre in a Panchayat (or group of Panchayats) through Public Private Partnership (PPP) by providing livelihood opportunities and urban amenities to improve the quality of life in rural areas.
Objectives
Provision of livelihood opportunities and urban amenities in rural areas to bridge the rural urban divide thereby reducing the migration from rural to urban areas.
3. Salient features of PURA
To bridge the rural - urban divide and achieve balanced socio economic development by providing physical and social infrastructure, as given below, in identified rural clusters to further their growth potential:-
Road, transportation and power connectivity
Electronic connectivity in the form of reliable telecom, internet and IT services
Knowledge connectivity in the form of good educational and training institutions
Market connectivity to enable farmers to get the best prices for their produce
Provision of drinking water and up-gradation of existing health facilities.
4. Salient features of PURAcontd
Intervention should be over and above the existing schemes.
Intervention should aim at the cluster becoming growth centre.
Intervention to cover amenities and livelihood factors.
Convergence of existing schemes to be ensured.
Land cost and salaries not to be booked in the scheme.
5. 6. The Restructured PURA Scheme
7. PURA Strategy
Implementation of scheme through PPP
PPP between Gram Panchayat (GP) andPrivate Sector partner
Core funding from PURA scheme of MoRD
Additional support through convergence ofCentral Govt Schemes
Private sector to bring in investment and operational expertise
Project based and risk sharing among stakeholders
8. Structure of the PPP Cell
Ministry of Rural Development (MoRD), Govt of India
Under the overall guidance of Dr. ArvindMayaram,
Additional Secretary & Financial Advisor (AS&FA), MoRD
PPP Cell functional since Oct 2009 under Joint Secy
(Admin) with a PPP Expert provided under ADB T.A.
Mandate of the Cell
Promoting PPP in rural infrastructure development
Support PPP initiatives of the Ministry as well as related Departments / Ministries
Design and implementation of India-wide pilot phase of Provision of Urban Amenities in Rural Areas (PURA) through PPP
Capacity and awareness building of staffs and stakeholders as partof different programmes
Involving lowest tiers of Governance (Panchayats) in PPP
9. Urban Amenities to be provided under PURA
Under MoRD Schemes:-
1. Water and Sewerage
2. Village streets
3. Drainage
4. Solid Waste Mgt
5. Skill Development
6. Development of Economic Activity
Under Non MoRD Schemes:-
7. VillageStreetLighting
8. Telecom
9. Electricity, etc.
Add-on Projects i.e. Revenue earning projects (Indicative) :-
10. Village linkedTourism
11. Integrated Rural Hub, Rural Market
12. Agri Common Services Centre, etc .
13. Any other rural economy based project
10. Business Model
Leveraging public funds with private capital & management for creation & maintenance of ruralinfrastructure.
Due to thin revenue base, most CAPEX from Govt. schemes.
Community Development schemes ordinarily included.
O&M of assets and services for 10 years.
Private Developer to have flexibility in choosing PURA project area & revenue generating projects as add-ons.
Capital Grant limited to 35% of project cost for meeting viability gap.
Cost of each PURA project limited to Rs. 120 crores.
Actual Capital Grant to vary from project to project
11. 12. Land
For the public amenities, Gram Panchayat / State Govt to provide land free of cost.
For the Add-on activities
Revenue sharing between GP and Private Partner if land provided by GP / State Govt.
Such add-on facilities to revert back to GP/ State Govt at the end of concession period.
In case the private developer has to purchase the land from open market, cost of land not to be included for the estimation of capital grant
13. Agreements Related
Concession Agreement
Between GP and Private Developer. Will include minimum service level standards, performance guarantees etc.
State Support Agreement
Tripartite Agreement between Central Govt, State Govt and PrivateDeveloper.
State Govt. commitment for core facilities like roads, water
and power to the PURA area.
Independent Engineer
To supervise and monitor performance during project life cycle.
Cost of Independent Engineer financed under PURA.
14. Selection Process
Through open competitive bidding process.
Expression of Interest from reputed Infrastructure Companies.
No financial bidding and evaluation based on technical capability and pre approved evaluation methodology.
Short listed bidders invited to pre-bid conference.
Emphasis on rural development priorities as well as developers perspective on an economically viable project.
DPR to form the basis of determining capital grant admissible. To be vetted by Independent Engineer.
Inter Ministerial approval committee to approve final cost and capital grant.
15. ADB Technical Assistance (T.A.)
ADB views PURA as a critical initiative to bring PPP into rural infrastructure sector
Has provided a full time PPP Expert, Transaction Advisor and Legal Advisor to assist in the preparatory stages and conceptualization of PURA pilot phase
Extended 3-year support towards mainstreaming PPP in PURA
The support is for policy framework development, institutionalization of PPP unit in MoRD, capacity building of MoRD and identified Gram Panchayat besides rollout of pilot projects
16. Next Steps
CCEA has approved PURA pilot projects on 21stJan
7-8 pilot projects are expected to be taken up within the outlay of Rs. 248 crores in the 11th Plan. The implementation of the scheme will test the principles on which it is based. This will help inupscaling the scheme in future.
Rollout of the ADB programme by MoRD
Calling Expression of Interest from established
infrastructure developers.
Scaling up after experience of pilot phase
17. DPRs Approved
IL&FS Limited in Jaipur District, Rajasthan
IL&FS Limited in Rajsamand District, Rajasthan
IL&FS Limited in Dehradun District, Uttarakhand
Infrastructure Kerala Limited in Thrissur District, Kerala
Infrastructure Kerala Limited in Mallapuram District, Kerala
Marg Limited in Karaikal District, Puducherry
Megha Engineering Infrastructure Limited in Krishna District,Andhra Pradesh (Kondapalli and Ibrahimpatnam gram panchayats)
SVEC Constructions Limited in Warangal District(ParvathagiriMandal-10 villages), Andhra Pradesh
18. Transaction structure
19. Overview of the Concession Agreement
20. Next Steps
Under PURA only 2 per state limited number of projects supported.
Independent PPP Models in consultation with the state for development of more clusters.
Possibilities.
21. Thank you.
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