not satisfied with state governments' efforts at encouraging private investment in public-private partnership projects in the infrastructure sector, the Union ministry of finance (m o f) has asked all states to create separate provisions to attract private investments.

According to ministry sources, each state is expected to invest Rs 2,000 crore a year towards partnership projects, with a countrywide total of Rs 50,000 crore per year. Union finance minister P Chidambaram has informed all chief ministers that additional resources for development can be accelerated if they show active interest in such projects. Besides, the Centre has suggested all states to set up partnership cells to expedite the process. Officers of the cells will be responsible for smoothening the process between different infrastructure departments in states and the Centre.

Though states such as West Bengal, Uttaranchal and Gujarat already have such agencies in place to streamline and support partnership projects, private investment has not yet turned into a crucial factor in development. The Confederation of Indian Industry, southern region, has identified 10 infrastructure-related projects across the country.