The pipeline provides early visibility of potential PPP projects to enable investors, developers, and other stakeholders to undertake more informed planning and investment decisions.
- The pipeline comprises 852 projects worth over ₹17 lakh crore to accelerate infrastructure development across sectors.
About the Public Private Partnership (PPP)
- PPP is a long-term contractual arrangement between a government or public authority and a private sector entity for the provision of public infrastructure or services.
- Key PPP Models
- Build Operate Transfer (BOT): Private entity finances, designs, build, and operate a facility for a set period (earning via user fees) before transferring ownership to the public sector.
- Design Build Finance Operate (DBFO): Private party handles the entire lifecycle from design to operation. The government retains ownership throughout, paying the private party via service fees or collected user tolls.
- Engineering Procurement and Construction (EPC): The government funds the project and retains management. The private entity is strictly a contractor responsible for design and construction.
- Hybrid Annuity Model (HAM): A mix of EPC and BOT. The government pays 40% of the cost in milestone-linked installments; the developer raises the remaining 60% and recovers it through annuities.
Need for PPP
- Bridging the Infrastructure Financing Gap: India will require an estimated $4.5 trillion in infrastructure investment by 2030.
- Reducing Fiscal Burden on Government: Frees up public tax revenue for social welfare (healthcare and education) by shifting the burden of physical asset creation to the private sector
- Access to Advanced Technology and Innovation: Integrates cutting-edge private-sector expertise and global best practices.
- Other: Improving Efficiency and Timely Project Delivery, etc.
Initiative taken to Promote PPP
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