Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India.

Public Private Partnership (PPP) is a way to execute and maintain a project (generally an infrastructure project) for delivering of goods and services through collaboration of government and private sector. Infrastructure projects in India were built by Government till 1990. But in the post liberalization era, various infrastructure projects are being built on PPP model.

The main reasons for why PPP is required for infrastructure projects are:

1. There is major infrastructure deficit which the government cannot build on its own.
2. Infrastructure is capital intensive and private sector can bring in the required financial resources.
3. For faster infrastructure development we require the speed and skill of the private sector.
4. Private sector is relatively more effective in executing and maintaining infrastructure projects.
5. Private sector can bring in better technology and knowhow 

Indian Railways has adopted three models for station redevelopment:

1. One is the PPP model, under which a project is planned, statutory clearances obtained and a developer is chosen to upgrade a facility. Habibganj, in the suburbs of Bhopal, is the country’s first railway station to be redeveloped as a PPP project.
2. The second is collaboration with foreign governments to develop stations.
3. The third model is the Swiss Challenge method, where bidders have the freedom to design and develop a project on their own.

Rail infrastructure development, having the highest multiplier impact, can play a major role in making India a developed economy by 2047.