Asian Journal of Research in Social Sciences and Humanities
Year : 2011, Volume : 1, Issue : 4
First page : ( 66) Last page : ( 72)
Online ISSN : 2249-7315.

Public- private partnership ininfrastructure development

Chanchu T. Christy*, Assistant Professor in Economics

*SNMV College of Arts & Science, Malumachampatti, Coimbatore – 21.

Online published on 3 January, 2012.

Abstract

India, despite becoming the second fastest growing and the fourth largest economy of the world, continues to face large gaps in the demand and supply of essential social and economic infrastructure and services. To develop the infrastructure in India and to remove infrastructure deficiency in the country, investment needs are huge, which could not be met by the public sector alone, due to fiscal constraints and mounting liabilities of the government. Hence, development of infrastructure with private sector participation is the option that needs to be explored in every sector. In this direction, economic reforms initiated in the country provide forth the policy environment towards public-private partnership (PPP) in the infrastructure development. The state governments in India have ventured into PPP model to develop their State infrastructure on the lines of central schemes. Accordingly, 513 projects are in progress under the PPP model with an estimated investment of 234,204 (US$ million) as on 2010. Apart from enabling private investment flows, PPPs also deliver efficiency gains and enhanced impact of the investments. The efficient use of resources, availability of modern technology, better project design and implementation, and improved operations combine to deliver efficiency and effectiveness gains which are not readily produced in a public sector project.

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