Govt’s New PPP Strategy Seen Boosting Infrastructure Creation

Govt’s New PPP Strategy Seen Boosting Infrastructure Creation

The National Democratic Alliance (NDA) government has given a fresh lease of life to the public-private partnership (PPP) projects across sectors such as housing, railways, roads, aviation, power distribution, mining and even school education and health services.

PPPs relate to the delivery of public services by private entities, and are awarded through a competitive bidding process. These projects are typically run on the lines of build-operate-transfer, build-operate-own-transfer or build-operate-own models and are favoured by governments globally to make up for a shortfall in investment spending.

Experts say the PPP strategy holds promise for infrastructure creation if the financing piece is tied up.

“The government’s renewed focus on PPP will hold infrastructure sector in good stead. For these PPP projects to materialize, the next critical path item will be financing. As most public sector lenders and Indian developers are stretched, the government will need to take proactive measures to facilitate financing for these projects,” said Srishti Ahuja, director at consulting firm EY. Read More…

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