Official says a successful example of project implementation under the PPP mode was the Kilambakkam bus terminus. The CMDA has handed over the operation and maintenance of the terminus to a single concessionaire (private operator) for 15 years. This is expected to generate an annual revenue of over ₹2.4 crore for the CMDA. 
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The Tamil Nadu government is betting big on executing medium-to-large infrastructure projects under public-private partnership (PPP) model to achieve its ambitious target of a $1-trillion economy. The Tamil Nadu Infrastructure Development Board (TNIDB) is the nodal agency for infrastructure project development.

“We have seen initial success in executing projects under the PPP mode,” Pooja Kulkarni, CEO, TNIDB said.

One of the successful examples is the Kilambakkam bus terminus. The Chennai Metropolitan Development Authority (CMDA) has handed over the operation and maintenance of the terminus to a single concessionaire (private operator) for 15 years, which is expected to generate an annual revenue of over ₹2.4 crore for the CMDA, she added.

“We are now looking at tcommercial development of old bus stands at five other locations, including Karur, Erode and Hosur. A feasibility study would be taken up..,” she added.

According to her, the PPP model would be implemented for projects such as multi-level parking, for which bids would be invited soon. Spaces to set up multi-level parking facilities are being evaluated in Chennai and other locations. The PPP model would also be a part of the 24/7 water supply projects. At present, there is an ongoing project in Coimbatore. The TNIDB is now looking at rolling out a water supply project for Salem city. The municipalities will determine the tariffs, while the development, operation, and maintenance would be managed by a private operator.

Other projects to be implemented under the PPP model include bio-CNG plants in Coimbatore, Madurai, Tiruchi, Tambaram, and Salem. Besides, for waste-to-energy projects in Chennai, the bids are under evaluation and similar projects are expected to come up in other cities as well. Tamil Nadu is also looking to implement big infrastructure projects under the PPP mode. This includes pumped storage and battery storage projects, in the range of ₹4,000 to ₹5,000 crore, for which bids would be invited soon, she added.

Smaller projects under the PPP model, such as the Bio-CNG initiatives valued at around ₹20 crore, along with larger projects such as airports and pumped storage facilities, align with the roadmap outlined in the Tamil Nadu Vision $1-Trillion report and the recently released PPP policy. The Tamil Nadu government had selected Boston Consulting Group to “develop an overall strategy and road map”. As per the report, released during the Global Investors Meet 2024, infrastructure was the bedrock of the State’s economy and pivotal to achieving its ambitious $1 trillion vision.

Building modern, resilient, and sustainable infrastructure was paramount to ensuring continued growth. Planning infrastructure investments in advance was vital, given their scale and long gestation in implementation, to facilitate economic progress, it had said.To further stimulate the economy, the State must continue investing in sectors such as energy, transportation, water, sanitation, and housing. This involves broadening the focus on clean energy and undertaking transportation enhancements, while employing urban planning techniques that embrace resilience, waste management and efficient water usage, the report added.

In the past decade, private investment has been meagre in the State’s infrastructure sector. The government intends to address the issue by creating a robust investor-friendly framework, which would enthuse private sector players to partner with the government through sustainable long-term contracts, according to the State’s PPP policy.