The state of infrastructure in India has been a source of concern for local and foreign investors interested in tapping its potential as a business destination. The creation of world class infrastructure would require large investments in addressing the deficit in quality and quantity. Therefore, it is necessary to explore the scope for plugging this deficit through Public Private Partnerships (PPPs) in all areas of infrastructure like roads, ports, energy, etc.
Recently, legal and regulatory changes have been made to enable PPPs in the infrastructure sector, across power, transport, and urban infrastructure.
Public Private Partnership is a joint collaboration between public and private sectors so as meet the paucity of capital investment to fulfill the requirement of infrastructural development. It has been observed worldwide that it is difficult for the private sector to meet the financial requirements of infrastructure in isolation at the same time tackling the risks inherent to building infrastructure. Therefore, the PPP model has come to represent a logical, viable and necessary option for the Government and the private sector to work together.
Public Private Partnership (PPP) project as per Government of India means a project based on a long term contract or concession agreement, between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.
Indian infrastructure growth has reached massive heights. Most PPPs have been restricted to the roads sector. And the sector still has lot of scope and the measures are taken also by the PPPs to achieve it. Government has taken various steps to accomplish the projects successful.