Paper Details

Indian economy is growing at a very fast pace and it has a dynamic and robust financial system. A stable policyenvironment is ensured by its democratic status and its independent institutions guarantee the rule of law. The mostsignificant criteria for a continued growth rate of an economy are the provision of a quality infrastructure. According to thePlanning Commission, an approximation of 8 percent of the Gross Domestic Product needs to be invested. Up gradation oftransport (roads, railways, airports, and ports), power, and urban infrastructure is therefore seen as critical for sustainingIndia’s economic growth, along with improved quality of life, increase in employment opportunities, and progress towardsthe elimination of poverty. PPPs aim to combine the skills, expertise, and experience of both the public and private sectors todeliver higher standard of services to customers or citizens. When infrastructure is developed as PPPs the process is oftencharacterized by detailed risk and cost appraisal, complex and long bidding procedures, difficult stakeholder management,and long-drawn negotiations to financial closure. This means that PPPs are critically dependent on sustained and explicitsupport of the sponsoring government. Current status of PPP projects in financial years from 2005 to 2017 in India as wellas in various sectors is discussed. Allowing for private sector participation can generate more efficiencies by creating morecompetition, realization of economies of scale and greater flexibility than is available to the public sector, The PPP route isalso seen as an attractive alternative in developing countries where governments are faced with constraints on borrowingmoney for expensive projects and may not have the required expertise in planning or executing large projects.

Komal V. Chaudhari, Dr. Sahkil S. Malek, “Effectiveness of Public Private Partnership in Infrastructure Development in India: A Review”, International Journal of Advance Engineering and Research Development (IJAERD), Vol. 5, Issue 15, pp. -, January 2018.