Public-Private Partnership Experience in India: Challenges and Prospects

Abstract

India has caught a significant attention of World economies for its robust economic growth in the
beginning of twenty first century. However, the sustaining of higher economic growth requires
substantial investment in infrastructure. On this front, country has been struggling hard to
develop the infrastructure. The government is looking towards budgetary allocation, tariff policy,
fiscal incentives, private sector participation, etc. In this direction the role of PPP model is well
acknowledged. The present study is an addition to the exiting economic literature for bringing
the experiences of Indian PPP projects in terms of their distribution across sectors, states and
status, key challenges and future prospects, under an umbrella. Indian PPP agreements are in a
nascent stage, and it is not possible to give exclusively concluding statement regarding PPPs
successful. However, the case studies of few projects suggest that PPP projects in India have
attended the growing demand for infrastructure facilities, managed higher losses of fuels and
pollution and controlled the losses to electricity transmission. The successfulness of Indian PPP
model is limited due to land acquisition, delays in clearances, lack of effective regulation, etc.
The legal journey of India for ensuring the effective delivery of PPP projects is a remarkable step
to realize the growth potentials and other welfare gains.