REPORT OF THE COMMITTEE ON REVISITING AND REVITALISING PUBLIC PRIVATE PARTNERSHIP MODEL OF INFRASTRUCTURE
by Department of Economic Affairs Ministry of Finance
Public Private Partnerships (PPPs) in infrastructure refer to the provision of a public asset and service by a private partner who has been conceded the right (the “Concession”) for the purpose, for a specified period of time, on the basis of market determined revenue streams, that allow for commercial return on investment.
The availability of high-quality infrastructure and the overcoming of India’s infrastructure deficit is crucial to attaining and sustaining rapid growth that generates the right kinds of jobs. PPPs in infrastructure represent a valuable instrument to speed up infrastructure development in India. This speeding up is urgently required for India to grow rapidly and generate a demographic dividend for itself and also to tap into the large pool of pension and institutional funds from aging populations in the developed countries (Chapter 3, paragraph 3.5.2).
India offers today the world’s largest market for PPPs. It has accumulated a wealth of experience in getting to this premier position. As the PPP market in infrastructure matures in India, new challenges and opportunities have emerged and will continue to emerge. Periodic review of PPPs, as in the present Committee’s remit, are a must to help address issues before they become endemic and to mainstream innovations and foster new ones that improve the successful delivery of PPP projects. This has to be a dynamic process. Such reviews should ideally therefore be done frequently, perhaps once every three years, and more often if they become part of the work programme of the institute of excellence in PPPs that the Committee has recommended be set up urgently (Chapter 10, paragraph 10.1.3).
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