About PPP

Public-Private Partnership (PPP) broadly refers to long term, contractual partnerships between public and private sector agencies, specially targeted towards financing, designing, implementing, and operating infrastructure facilities services that were traditionally provided by the public sector.

As per the Scheme for Financial Support to Public Private Partnerships in Infrastructure, of the Government of India,

“Public Private Partnership (PPP) Project means a project based on a contract or concession agreement, between a Government or a statutory entity on the one side and a Private Sector Company on the other-side, for investing in construction and maintenance of infrastructure asset and / or delivering an infrastructure service.”

  • Private Sector Company to be selected through a process of open competitive bidding- no MoUs or sweetheart deals- negotiated deals not efficient
  • Payment of user charges essential- for only such sectors where such user charge is possible
  • Contract or concession agreement- legal backing Can be with Government (including state and local governments) or statutory entity, genuine risk transfer
  • Private money in Public Infrastructure, not vice versa Ergo
  • PPPs prioritized by Government, not the private company