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: There is major infrastructure deficit which the government cannot build on its own. Infrastructure is capital intensive and private sector can bring in the required financial resources. For faster infrastructure development we require the speed and skill of the private sector. Private sector is relatively more effective in executing and maintaining infrastructure projects. Private sector can bring in better technology and knowhow Indian Railways has adopted three models for station redevelopment: One is the PPP model, under which a project i...