Govt woos pvt sector for greener JNNURM

By linking its flagship scheme Jawaharlal Nehru National Urban Renewal Mission - for urban infrastructure development of 63 mission cities...

By linking its flagship scheme Jawaharlal Nehru National Urban Renewal Mission (JNNURM) — for urban infrastructure development of 63 mission cities — with sustainable climate, the urban development ministry is hoping to attract the private sector under the Public Private Partnership (PPP) mode.

Taking a leaf out of the success of a Surat-based twin project on waste management and power plant generation which has helped it earn carbon credits, the ministry has decided to promote this model. In fact, it has already started the process by coming up with a paper on Best Practices in PPP, in collaboration with industry chamber, Confederation of Indian Industry.

“Certain projects under JNNURM which are viable and feasible through carbon credits are prime cases for PPP and proper leveraging of the scheme. The idea is to augment Rs 50,000 crore being provided by the government by coming up with well-structured projects where the private sector can be brought in,” said an official source.

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Carbon credits are tradable instruments in global markets that have been implemented to mitigate global warming. Currently, the carbon credits are being traded at Euro 15-20 in global markets, according to experts.

“Because of carbon credits, suddenly some of these projects are becoming viable to the private sector. For instance, in a treatment plant, if they are able to generate electricity to push it back in the power grid, carbon credits are earned. Later, after a validation of process and technology, these carbon credits can be sold in global market, and capital costs can be recovered in a far shorter period,” the source added.

For municipalities which are interested in such projects, Pricewaterhouse Coopers (PwC), which is a consultant for JNNURM, will come up with financial modelling and ascertain carbon credits that can be earned.