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Ppp 22102020

This document provides information about public-private partnerships (PPPs) in India. It discusses various PPP models and gives examples of PPP projects across several sectors such as urban development, education, health, infrastructure, and services. Some key points summarized: 1) PPPs are forms of cooperation between public authorities and the private sector to modernize infrastructure and public service delivery. They involve private sector financing, construction, operation or maintenance of public services and assets. 2) Examples of successful PPP projects in India include the Yeshasvini health insurance scheme in Karnataka, private operation of the Delhi-Noida bridge, and privatization of airports in Mumbai and Delhi. 3) The government

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PPT on Public-private partnership (PPP) Paper name : Social Welfare Administration -SW 612 Submitted To : Mr.Prashant Chauhan Submitted By : Sony Kumari Course name : M.S.W Year : 1st Year Semester : 1st Semester
Public-private partnership (PPP) Public-private partnership (PPP) is one of the governance mechanisms available for the public authorities to perform their statutory tasks. PPPs are forms of cooperation between public authorities and the private sector that aim to modernise the delivery of infrastructure and strategic public services. In some cases, PPPs involve the financing, design, construction, renovation, management or maintenance of an infrastructure asset; in others, they incorporate the provision of a service traditionally delivered by public institutions.
Tasks and services performed under PPP The public administration has a statutory obligation to provide a range of public utility tasks and services in the following sectors: • Transport and infrastructure • Healthcare • Education • Defence • Telecommunications • Environment (e.g. innovative sources of energy) • Public order and safety • Recreation and culture (e.g. tangible and intangible cultural heritage protection and restoration) • General public services
PPP can be categorized by type of partnership or transactional arrangement into: 1) PPP of contractual nature and PPP of institutional nature. • In a PPP of contractual nature, the partnership between the public and private sector is based only on a contract. In this type of arrangement, the private sector assumes responsibility for designing, building, and managing the facility. The private partner also manages the project finances, sometimes with contributions from the government. • In a PPP of institutional nature, cooperation between the public and private sector takes place within a specific entity: a special purpose vehicle, SPV. Mutual rights and obligations are secured by the entity’s statutes and by an agreement between shareholders, i.e. public and private actors. In both arrangements, management of traditional public sector obligations is delegated to the private sector, and the whole enterprise is regulated by the contract.
Delivery Models/Types • Finance Only (FO) • Design-Bid-Build (DBB) • Design-Build-Maintain (DBM) • Operate-Maintain (OM) • Operation License (OL) • Design-Build-Operate (DBO) • Build-Operate-Transfer (BOT) • Design-Build-Finance-Operate (DBFO) • Build-Own-Operate-Transfer (BOOT) • Lease-Develop-Operate (LDO) • Build-Lease-Operate-Transfer (BLOT) • Buy-Own-Operate-Transfer (BUYOOT) • Design-Build-Finance-Own-Operate-Transfer (DBFOOT) • Build-Own-Operate (BOO • Buy-Build-Operate (BBO)
To be Continued…… • Finance Only (FO) -In the Finance Only model, a private entity, such as a financial services company, a pension fund or a bank, funds the construction of the public infrastructure directly or through mechanisms such as a long-term lease or a bond issue. The public partner bears all risks and costs of the construction and operation of the facility. • Design-Bid-Build (DBB) -In this model, the public partner defines the requirements for the project, ensures its financing and design. The procurement procedure is used to select a private bidder, responsible for the construction. The public partner is the owner of a newly constructed facility and provides its service and maintenance. • Design-Build-Maintain (DBM) - In the Design-Build-Maintain model, the private partner designs, builds, and maintains the infrastructure in accordance to the specifications and requirements of the public partner. The price is usually pre-agreed and fixed, so the risk and cost of quality assurance and maintenance of the constructed facility is on the private partner. The public entity owns and operates the assets. • Operate-Maintain (OM) - In this model, the public entity signs a contract with the private partner to provide or maintain a service through the public facility. The ownership of the asset remains with the public entity. Sometimes this model is referred to as an outsourcing contract. • Operation License (OL) -In the Operation License model, the public entity grants a license to the private entity to provide public service, usually with limited duration. This model is frequently used in IT projects.
To be Continued…… • Design-Build-Operate (DBO) - In this model, the private partner designs and builds a public property according to the requirements and specifications of the public partner and at a fixed price. The public entity bears financing and costs. Once the construction is completed, the private partner takes the property in a long-term lease to provide service. • Build-Operate-Transfer (BOT) -Under the Build-Operate-Transfer model, the private partner builds and finances the construction of the public facility and uses it to provide service under control of the public entity. The private partner uses the facility under the long-term lease/concession and upon the expiration of the lease, the facility is transferred back to the public partner. • Design-Build-Finance-Operate (DBFO) -In the Design-Build-Finance-Operate model, the private partner designs, builds, and finances a new public facility under a long-term lease. During the lease period, the private partner operates the facility and upon expiration, the facility is transferred to the public partner. • Build-Own-Operate-Transfer (BOOT) -In this model, the private partner designs, builds, finances, and operates the public facility, while retaining its ownership under the franchise given by the public entity. The private partner charges fees to the public entity and/or end users for the provided services. At the end of the franchise period, the ownership of the facility is transferred back to the public partner without compensation to the private partner. • Lease-Develop-Operate (LDO) -In case of the Lease-Develop-Operate model, the private partner leases the public facility, develops and improves it technologically and functionally, as well as operates it. The public partner retains ownership of the facility and receives payments according to the lease agreement. This model is usually used in development of airport facilities.
To be Continued…… • Build-Lease-Operate-Transfer (BLOT) -In the Build-Lease-Operate-Transfer model, the private partner builds and leases a facility, while its ownership remains with the public partner. The private partner provides services and upon expiration of the agreement, the ownership of the facility is returned to the public partner. • Buy-Own-Operate-Transfer (BUYOOT) -Under the Buy-Own-Operate-Transfer model, the private partner buys a public facility, uses it for a certain period of time and provides the service. Upon expiration of the agreement, the facility is transferred to the public partner without charge. • Design-Build-Finance-Own-Operate-Transfer (DBFOOT) -In this model, the private partner designs, develops, builds, and finances the implementation of a public project. The private partner provides the services and uses the facility, which is his property, for a certain period of time. By expiration of that period, the ownership is transferred to the public partner without compensation. • Build-Own-Operate (BOO) -Under the Build-Own-Operate (BOO) model, the private partner builds and manages the public property in their ownership without obligation to transfer the assets to the public partner. The public partner regulates and controls services provided by the private partner. • Buy-Build-Operate (BBO) -In the Buy-Build-Operate model, the private partner buys the public facility under the contract that the assets are to be upgraded and operated for a specified period of time. The private partner also provides services to the public partner and/or end users. By expiration of the term, the private partner retains ownership over the public asset.
Public Private Partnership in India Below are a few PPP projects and sector highlights in urban development, Education, Health, Infrastructure and services. Urban Development • Urban Development Departments: Almost all state governments have Urban Development Departments set up specifically for the purposes of promoting urban development through different programmes. For example, the Maharashtra Urban Infrastructure Fund (MUIF) consists of a Trust Fund, a Trustee Company, namely the Maharashtra Urban Infrastructure Fund Trustee Company Limited and an Asset Management Company, namely Maharashtra Urban Infrastructure Development Company Limited. The envisaged functions are Project Development, Capacity Building, Facilitating Finance, and Partial Direct Lending. • Jawaharlal Nehru National Urban Renewal Mission (JNNURM): The aim of JNNURM is to encourage reforms and fast track planned development of identified cities. Focus is on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens. It has two major components – the Urban Infrastructure and Governance and Basic Services for the Urban Poor. • PPPs in water supply projects have been through municipal bonds in cities such as Ahmedabad, Ludhiana, and Nagpur • The Tirupur project - in Tamil Nadu is a BOOT project, the first privately financed water and sewerage project in India. An SPV was set up for the purpose and the project took more than ten years from concept to financial closure.
To be Continued…… • Education -Education has not been that successful in PPP. A highlighted PPP program in the education sectors, the Hoshangabad Science Teaching Program was abruptly ended. • Hoshangabad Science Teaching programme (HSTP) - was introduced in 1973 in Hoshangabad district, Madhya Pradesh within participating government schools. In the three decades of its existence it covered over a thousand schools and was regarded as an innovative approach to the teaching of science. However, the sudden closure of this first and most durable non-State initiative in education in 2002 based on an external evaluation that its results at the Standard X level were not of adequate standards triggered questions about the nature of state and non-state engagement in the provision of education. • There is a general non-acceptability of profit-based approach in the education sector thus making private players not very enthusiastic about it.
To be Continued…… Health - The introduction of PPP in the health sector is a relatively recent phenomena. Although a few projects have been implemented in this sector, their implementation has mixed success. Some of the projects in which PPP has been attempted are: • Yeshasvini Health scheme in Karnataka: The Yeshasvini Cooperative Farmers Healthcare Scheme is a health insurance scheme targeted to benefit the poor. It was initiated by Narayana Hrudayalaya, super-specialty heart hospital in Bangalore, and by the Department of Cooperatives of the Government of Karnataka. The Government provides a quarter (Rs. 2.50) of the monthly premium paid by the members of the Cooperative Societies, which is Rs.10 per month. The incentive of getting treatment in a private hospital with the Government paying half of the premium attracts more members to the scheme. The cardholders could access free treatment in 160 hospitals located in all districts of the state for any medical procedure costing upto Rs. 2 lakhs. • Arogya Raksha Scheme in Andhra Pradesh: The Government of Andhra Pradesh initiated the Arogya Raksha Scheme in collaboration with the New India Assurance Company and with private clinics. It is an insurance scheme fully funded by the government. It provides hospitalization benefits and personal accident benefits to citizens below the poverty line who undergo sterilization for family planning from government health institutions. The government pays an insurance premium of Rs. 75 per family to the insurance company, with the expected enrollment of 200,000 acceptors in the first year. • Contracting in Sawai Man Singh Hospital, Jaipur: The SMS hospital has established a Life Line Fluid Drug Store to contract out low cost high quality medicine and surgical items on a 24- hour basis inside the hospital. The agency to operate the drug store is selected through bidding. The successful bidder is a proprietary agency, and the medical superintendent is the overall supervisor in charge of monitoring the store and it’s functioning. The contractor appoints and manages the remuneration of the staff from the sales receipts. The SMS hospital shares resources with the drug store such as electricity; water; computers for daily operations; physical space; stationery and medicines. The contractor provides all staff salaries; daily operations and distribution of medicine; maintenance of records and monthly reports to SMS Hospital. • Rajiv Gandhi Super-specialty Hospital, Raichur, Karnataka47- The Rajiv Gandhi Super Speciality Hospital in Raichur Karnataka is a joint venture of the Government of Karnataka and the Apollo hospitals Group, with financial support from OPEC (Organization of Petroleum Exporting Countries). The basic reason for establishing the partnership was to give superspecialty health care at low cost to the people Below Poverty Line. The Govt. of Karnataka has provided the land, hospital building and staff quarters as well as roads, power, water and infrastructure. Apollo provided fully qualified, experienced and competent medical facilities for operating the hospital.
To be Continued…… Railways • World's fourth largest rail network and the second largest in Asia, Indian Railways has recently attracted immense global attention due to its successful turnaround to profitability. • Investment in India Railway for 2008-09 was USD 7.91 billion. • Indian Government is expanding the rail network to increase capacity for domestic cargo. The investment is expected to be about Rs. 22,000 crore (USD 4.525 billion). • Until now, container movement by rail was the monopoly of a public sector entity, CONCOR. The container movement has been thrown open to competition and private sector entities have been made eligible for running container trains. 14 applicants have submitted the application seeking permission for container train operation, which have been approved. • Many PPP projects have been announced by the Railway Minister in the current Railway budget including – Medical college attachments to railway hospitals, land and air space utilization, passenger amenities at Rs. 1102 crore.
To be Continued…… • Roads and Highways • With an extensive road network of kilometers, India has the second largest road network in the world (3.3 million kms). • Indian roads carry about 61% of the freight and 85% of the passenger traffic. • To further the existing infrastructure, Indian Government annually spends about Rs.18000 crores (USD 3.704 billion). • A large component of highways is to be developed through public-private partnerships o Several high traffic stretches already awarded to private companies on a BOT basis of Two successful BOT models are already in place – the annuity model and the upfront/lump sum payment model • Investment opportunities exist in a range of projects being tendered by NHAI for implementing the NHDP – contracts are for construction or BOT basis depending on the section being tendered. • A Rs.41,200 crores (US $ 5 billion) project plans to lay 6 lane roads over 6,500 kms of National Highways on the Design Build Finance and Operate (DBFO) basis. • Prime Minister’s Rural Roads Program, National Rail Vikas Yojana, National Maritime Development Program (NMDP), airport expansion programs • Delhi-NOIDA Bridge Project : The US$100 million Delhi-NOIDA Bridge Project, implemented on a BOOT framework on the basis of a 30-year concession, is India’s first major PPP initiative.
To be Continued…… • Ports • Indian Government plans to bring a new orientation to encourage the private sector to come forward in developing port activities and operations. • Many international port operators are invited to submit competitive bid for BOT terminals on a revenue share basis. • The National Maritime Development Plan (NMDP) has been set up by the Indian government to improve facilities at all the 12 major ports in India. At an investment of about US$ 12.4 billion, by November 2009, many projects are expected to be completed. • Investment need of $13.5 billion (Rs.60,750 crores) in the major ports under National Maritime Development Program (NMDP) to boost infrastructure at these ports in the next 7 years • 64% of the proposed investment in major ports envisaged from private players through PPP.
To be Continued…… Airports • Of a total number of 454 airports and airstrips in India, 16 are designated as international airports. • The Airports Authority of India (AAI) owns and operates 97 airports. • The Government aims to attract private investment in aviation infrastructure. • A projected investment of USD 8.5 billion has been planned for the development of Indian airports during the 11th plan. • Mumbai and Delhi airports have already been privatized. These two airports are being upgraded at an estimated investment of US$ 4 billion for the period 2006-16. • Passenger traffic is projected to grow at a CAGR of over 15% in the next 5 years. It is estimated that the data will cross 100 million passengers per annum by 2010 • Cargo traffic to grow at over 20% per annum. over the next five years, crossing 3.3 million tonnes by 2010 • ‘Open Sky’ Policy of the Government and rapid air traffic growth have resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines. • The Greenfield airports at Hyderabad and Bangalore have started operations under PPP initiatives since March and May 2008, respectively. Modernization at Delhi and Mumbai airports is underway while that at Chennai and Kolkata has finally started.
To be Continued…… Power • Power Generation in India is currently undertaken by State (52.5%), Centre (34%) and Private Sector initiatives (13.5%). • The government target of over 150,000 MW of hydel power germination is yet to be achieved. By the year 2012, India required an additional 100,000 MW of generation capacity. • This has welcomed numerous power generation, transmission, and distribution companies across the globe to establish their operations in the country under the famous PPP programmes. • There are strong opportunities in transmission network ventures with a total investment opportunity of about US$ 200 billion by 2012. The implementation of key reforms by Govt of India is likely to foster growth in all segments: o Unbundling of vertically integrated SEBs o “Open Access” to transmission and distribution network of Distribution circles to be privatised o Tariff reforms by regulatory authorities
Barriers to PPP • Lack of Political Will • Varied Institutional Framework • Non Standardization of Procurement Procedures • Need for Balancing Transparency with Expediency • Absence of Rigorous Project Development • Public sector capacity to successfully execute PPPs • Need to Address the Risk and Return Concerns of Foreign Investors. • Decentralization and Devolution • Inadequate Advocacy
Conclusion In the end, I would like to conclude by saying that there is weakness in enabling policy and regulatory framework. Substantial work needs to be done in making sector policies and regulations PPP friendly. A large number of these projects are in the States and without the active participation of the States it would not be possible to achieve satisfactory results. In addition, the market presently does not have adequate instruments and capacity to meet the long-term equity and debt financing needed by infrastructure projects. There is a lack of shelf of credible, bankable infrastructure projects, which could be offered for financing to the private sector. Some initiatives have been taken both at the central as well as the states’ level to develop PPP projects; these tend to be isolated cases and have demonstrated a marked lack of consistency. There is also a lack of capacity in public institutions and officials to manage the PPP process. Since these projects involve long term contracts covering the life cycle of the infrastructure asset being created, it is necessary to manage this process to maximize returns to all the stakeholders.
Ppp 22102020
Ppp 22102020
Ppp 22102020

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Ppp 22102020

  • 1.
    PPT on Public-privatepartnership (PPP) Paper name : Social Welfare Administration -SW 612 Submitted To : Mr.Prashant Chauhan Submitted By : Sony Kumari Course name : M.S.W Year : 1st Year Semester : 1st Semester
  • 4.
    Public-private partnership (PPP) Public-privatepartnership (PPP) is one of the governance mechanisms available for the public authorities to perform their statutory tasks. PPPs are forms of cooperation between public authorities and the private sector that aim to modernise the delivery of infrastructure and strategic public services. In some cases, PPPs involve the financing, design, construction, renovation, management or maintenance of an infrastructure asset; in others, they incorporate the provision of a service traditionally delivered by public institutions.
  • 5.
    Tasks and servicesperformed under PPP The public administration has a statutory obligation to provide a range of public utility tasks and services in the following sectors: • Transport and infrastructure • Healthcare • Education • Defence • Telecommunications • Environment (e.g. innovative sources of energy) • Public order and safety • Recreation and culture (e.g. tangible and intangible cultural heritage protection and restoration) • General public services
  • 6.
    PPP can becategorized by type of partnership or transactional arrangement into: 1) PPP of contractual nature and PPP of institutional nature. • In a PPP of contractual nature, the partnership between the public and private sector is based only on a contract. In this type of arrangement, the private sector assumes responsibility for designing, building, and managing the facility. The private partner also manages the project finances, sometimes with contributions from the government. • In a PPP of institutional nature, cooperation between the public and private sector takes place within a specific entity: a special purpose vehicle, SPV. Mutual rights and obligations are secured by the entity’s statutes and by an agreement between shareholders, i.e. public and private actors. In both arrangements, management of traditional public sector obligations is delegated to the private sector, and the whole enterprise is regulated by the contract.
  • 8.
    Delivery Models/Types • FinanceOnly (FO) • Design-Bid-Build (DBB) • Design-Build-Maintain (DBM) • Operate-Maintain (OM) • Operation License (OL) • Design-Build-Operate (DBO) • Build-Operate-Transfer (BOT) • Design-Build-Finance-Operate (DBFO) • Build-Own-Operate-Transfer (BOOT) • Lease-Develop-Operate (LDO) • Build-Lease-Operate-Transfer (BLOT) • Buy-Own-Operate-Transfer (BUYOOT) • Design-Build-Finance-Own-Operate-Transfer (DBFOOT) • Build-Own-Operate (BOO • Buy-Build-Operate (BBO)
  • 9.
    To be Continued…… •Finance Only (FO) -In the Finance Only model, a private entity, such as a financial services company, a pension fund or a bank, funds the construction of the public infrastructure directly or through mechanisms such as a long-term lease or a bond issue. The public partner bears all risks and costs of the construction and operation of the facility. • Design-Bid-Build (DBB) -In this model, the public partner defines the requirements for the project, ensures its financing and design. The procurement procedure is used to select a private bidder, responsible for the construction. The public partner is the owner of a newly constructed facility and provides its service and maintenance. • Design-Build-Maintain (DBM) - In the Design-Build-Maintain model, the private partner designs, builds, and maintains the infrastructure in accordance to the specifications and requirements of the public partner. The price is usually pre-agreed and fixed, so the risk and cost of quality assurance and maintenance of the constructed facility is on the private partner. The public entity owns and operates the assets. • Operate-Maintain (OM) - In this model, the public entity signs a contract with the private partner to provide or maintain a service through the public facility. The ownership of the asset remains with the public entity. Sometimes this model is referred to as an outsourcing contract. • Operation License (OL) -In the Operation License model, the public entity grants a license to the private entity to provide public service, usually with limited duration. This model is frequently used in IT projects.
  • 10.
    To be Continued…… •Design-Build-Operate (DBO) - In this model, the private partner designs and builds a public property according to the requirements and specifications of the public partner and at a fixed price. The public entity bears financing and costs. Once the construction is completed, the private partner takes the property in a long-term lease to provide service. • Build-Operate-Transfer (BOT) -Under the Build-Operate-Transfer model, the private partner builds and finances the construction of the public facility and uses it to provide service under control of the public entity. The private partner uses the facility under the long-term lease/concession and upon the expiration of the lease, the facility is transferred back to the public partner. • Design-Build-Finance-Operate (DBFO) -In the Design-Build-Finance-Operate model, the private partner designs, builds, and finances a new public facility under a long-term lease. During the lease period, the private partner operates the facility and upon expiration, the facility is transferred to the public partner. • Build-Own-Operate-Transfer (BOOT) -In this model, the private partner designs, builds, finances, and operates the public facility, while retaining its ownership under the franchise given by the public entity. The private partner charges fees to the public entity and/or end users for the provided services. At the end of the franchise period, the ownership of the facility is transferred back to the public partner without compensation to the private partner. • Lease-Develop-Operate (LDO) -In case of the Lease-Develop-Operate model, the private partner leases the public facility, develops and improves it technologically and functionally, as well as operates it. The public partner retains ownership of the facility and receives payments according to the lease agreement. This model is usually used in development of airport facilities.
  • 11.
    To be Continued…… •Build-Lease-Operate-Transfer (BLOT) -In the Build-Lease-Operate-Transfer model, the private partner builds and leases a facility, while its ownership remains with the public partner. The private partner provides services and upon expiration of the agreement, the ownership of the facility is returned to the public partner. • Buy-Own-Operate-Transfer (BUYOOT) -Under the Buy-Own-Operate-Transfer model, the private partner buys a public facility, uses it for a certain period of time and provides the service. Upon expiration of the agreement, the facility is transferred to the public partner without charge. • Design-Build-Finance-Own-Operate-Transfer (DBFOOT) -In this model, the private partner designs, develops, builds, and finances the implementation of a public project. The private partner provides the services and uses the facility, which is his property, for a certain period of time. By expiration of that period, the ownership is transferred to the public partner without compensation. • Build-Own-Operate (BOO) -Under the Build-Own-Operate (BOO) model, the private partner builds and manages the public property in their ownership without obligation to transfer the assets to the public partner. The public partner regulates and controls services provided by the private partner. • Buy-Build-Operate (BBO) -In the Buy-Build-Operate model, the private partner buys the public facility under the contract that the assets are to be upgraded and operated for a specified period of time. The private partner also provides services to the public partner and/or end users. By expiration of the term, the private partner retains ownership over the public asset.
  • 12.
    Public Private Partnershipin India Below are a few PPP projects and sector highlights in urban development, Education, Health, Infrastructure and services. Urban Development • Urban Development Departments: Almost all state governments have Urban Development Departments set up specifically for the purposes of promoting urban development through different programmes. For example, the Maharashtra Urban Infrastructure Fund (MUIF) consists of a Trust Fund, a Trustee Company, namely the Maharashtra Urban Infrastructure Fund Trustee Company Limited and an Asset Management Company, namely Maharashtra Urban Infrastructure Development Company Limited. The envisaged functions are Project Development, Capacity Building, Facilitating Finance, and Partial Direct Lending. • Jawaharlal Nehru National Urban Renewal Mission (JNNURM): The aim of JNNURM is to encourage reforms and fast track planned development of identified cities. Focus is on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens. It has two major components – the Urban Infrastructure and Governance and Basic Services for the Urban Poor. • PPPs in water supply projects have been through municipal bonds in cities such as Ahmedabad, Ludhiana, and Nagpur • The Tirupur project - in Tamil Nadu is a BOOT project, the first privately financed water and sewerage project in India. An SPV was set up for the purpose and the project took more than ten years from concept to financial closure.
  • 13.
    To be Continued…… •Education -Education has not been that successful in PPP. A highlighted PPP program in the education sectors, the Hoshangabad Science Teaching Program was abruptly ended. • Hoshangabad Science Teaching programme (HSTP) - was introduced in 1973 in Hoshangabad district, Madhya Pradesh within participating government schools. In the three decades of its existence it covered over a thousand schools and was regarded as an innovative approach to the teaching of science. However, the sudden closure of this first and most durable non-State initiative in education in 2002 based on an external evaluation that its results at the Standard X level were not of adequate standards triggered questions about the nature of state and non-state engagement in the provision of education. • There is a general non-acceptability of profit-based approach in the education sector thus making private players not very enthusiastic about it.
  • 14.
    To be Continued…… Health- The introduction of PPP in the health sector is a relatively recent phenomena. Although a few projects have been implemented in this sector, their implementation has mixed success. Some of the projects in which PPP has been attempted are: • Yeshasvini Health scheme in Karnataka: The Yeshasvini Cooperative Farmers Healthcare Scheme is a health insurance scheme targeted to benefit the poor. It was initiated by Narayana Hrudayalaya, super-specialty heart hospital in Bangalore, and by the Department of Cooperatives of the Government of Karnataka. The Government provides a quarter (Rs. 2.50) of the monthly premium paid by the members of the Cooperative Societies, which is Rs.10 per month. The incentive of getting treatment in a private hospital with the Government paying half of the premium attracts more members to the scheme. The cardholders could access free treatment in 160 hospitals located in all districts of the state for any medical procedure costing upto Rs. 2 lakhs. • Arogya Raksha Scheme in Andhra Pradesh: The Government of Andhra Pradesh initiated the Arogya Raksha Scheme in collaboration with the New India Assurance Company and with private clinics. It is an insurance scheme fully funded by the government. It provides hospitalization benefits and personal accident benefits to citizens below the poverty line who undergo sterilization for family planning from government health institutions. The government pays an insurance premium of Rs. 75 per family to the insurance company, with the expected enrollment of 200,000 acceptors in the first year. • Contracting in Sawai Man Singh Hospital, Jaipur: The SMS hospital has established a Life Line Fluid Drug Store to contract out low cost high quality medicine and surgical items on a 24- hour basis inside the hospital. The agency to operate the drug store is selected through bidding. The successful bidder is a proprietary agency, and the medical superintendent is the overall supervisor in charge of monitoring the store and it’s functioning. The contractor appoints and manages the remuneration of the staff from the sales receipts. The SMS hospital shares resources with the drug store such as electricity; water; computers for daily operations; physical space; stationery and medicines. The contractor provides all staff salaries; daily operations and distribution of medicine; maintenance of records and monthly reports to SMS Hospital. • Rajiv Gandhi Super-specialty Hospital, Raichur, Karnataka47- The Rajiv Gandhi Super Speciality Hospital in Raichur Karnataka is a joint venture of the Government of Karnataka and the Apollo hospitals Group, with financial support from OPEC (Organization of Petroleum Exporting Countries). The basic reason for establishing the partnership was to give superspecialty health care at low cost to the people Below Poverty Line. The Govt. of Karnataka has provided the land, hospital building and staff quarters as well as roads, power, water and infrastructure. Apollo provided fully qualified, experienced and competent medical facilities for operating the hospital.
  • 15.
    To be Continued…… Railways •World's fourth largest rail network and the second largest in Asia, Indian Railways has recently attracted immense global attention due to its successful turnaround to profitability. • Investment in India Railway for 2008-09 was USD 7.91 billion. • Indian Government is expanding the rail network to increase capacity for domestic cargo. The investment is expected to be about Rs. 22,000 crore (USD 4.525 billion). • Until now, container movement by rail was the monopoly of a public sector entity, CONCOR. The container movement has been thrown open to competition and private sector entities have been made eligible for running container trains. 14 applicants have submitted the application seeking permission for container train operation, which have been approved. • Many PPP projects have been announced by the Railway Minister in the current Railway budget including – Medical college attachments to railway hospitals, land and air space utilization, passenger amenities at Rs. 1102 crore.
  • 16.
    To be Continued…… •Roads and Highways • With an extensive road network of kilometers, India has the second largest road network in the world (3.3 million kms). • Indian roads carry about 61% of the freight and 85% of the passenger traffic. • To further the existing infrastructure, Indian Government annually spends about Rs.18000 crores (USD 3.704 billion). • A large component of highways is to be developed through public-private partnerships o Several high traffic stretches already awarded to private companies on a BOT basis of Two successful BOT models are already in place – the annuity model and the upfront/lump sum payment model • Investment opportunities exist in a range of projects being tendered by NHAI for implementing the NHDP – contracts are for construction or BOT basis depending on the section being tendered. • A Rs.41,200 crores (US $ 5 billion) project plans to lay 6 lane roads over 6,500 kms of National Highways on the Design Build Finance and Operate (DBFO) basis. • Prime Minister’s Rural Roads Program, National Rail Vikas Yojana, National Maritime Development Program (NMDP), airport expansion programs • Delhi-NOIDA Bridge Project : The US$100 million Delhi-NOIDA Bridge Project, implemented on a BOOT framework on the basis of a 30-year concession, is India’s first major PPP initiative.
  • 17.
    To be Continued…… •Ports • Indian Government plans to bring a new orientation to encourage the private sector to come forward in developing port activities and operations. • Many international port operators are invited to submit competitive bid for BOT terminals on a revenue share basis. • The National Maritime Development Plan (NMDP) has been set up by the Indian government to improve facilities at all the 12 major ports in India. At an investment of about US$ 12.4 billion, by November 2009, many projects are expected to be completed. • Investment need of $13.5 billion (Rs.60,750 crores) in the major ports under National Maritime Development Program (NMDP) to boost infrastructure at these ports in the next 7 years • 64% of the proposed investment in major ports envisaged from private players through PPP.
  • 18.
    To be Continued…… Airports •Of a total number of 454 airports and airstrips in India, 16 are designated as international airports. • The Airports Authority of India (AAI) owns and operates 97 airports. • The Government aims to attract private investment in aviation infrastructure. • A projected investment of USD 8.5 billion has been planned for the development of Indian airports during the 11th plan. • Mumbai and Delhi airports have already been privatized. These two airports are being upgraded at an estimated investment of US$ 4 billion for the period 2006-16. • Passenger traffic is projected to grow at a CAGR of over 15% in the next 5 years. It is estimated that the data will cross 100 million passengers per annum by 2010 • Cargo traffic to grow at over 20% per annum. over the next five years, crossing 3.3 million tonnes by 2010 • ‘Open Sky’ Policy of the Government and rapid air traffic growth have resulted in the entry of several new privately owned airlines and increased frequency/flights for international airlines. • The Greenfield airports at Hyderabad and Bangalore have started operations under PPP initiatives since March and May 2008, respectively. Modernization at Delhi and Mumbai airports is underway while that at Chennai and Kolkata has finally started.
  • 19.
    To be Continued…… Power •Power Generation in India is currently undertaken by State (52.5%), Centre (34%) and Private Sector initiatives (13.5%). • The government target of over 150,000 MW of hydel power germination is yet to be achieved. By the year 2012, India required an additional 100,000 MW of generation capacity. • This has welcomed numerous power generation, transmission, and distribution companies across the globe to establish their operations in the country under the famous PPP programmes. • There are strong opportunities in transmission network ventures with a total investment opportunity of about US$ 200 billion by 2012. The implementation of key reforms by Govt of India is likely to foster growth in all segments: o Unbundling of vertically integrated SEBs o “Open Access” to transmission and distribution network of Distribution circles to be privatised o Tariff reforms by regulatory authorities
  • 20.
    Barriers to PPP •Lack of Political Will • Varied Institutional Framework • Non Standardization of Procurement Procedures • Need for Balancing Transparency with Expediency • Absence of Rigorous Project Development • Public sector capacity to successfully execute PPPs • Need to Address the Risk and Return Concerns of Foreign Investors. • Decentralization and Devolution • Inadequate Advocacy
  • 22.
    Conclusion In the end,I would like to conclude by saying that there is weakness in enabling policy and regulatory framework. Substantial work needs to be done in making sector policies and regulations PPP friendly. A large number of these projects are in the States and without the active participation of the States it would not be possible to achieve satisfactory results. In addition, the market presently does not have adequate instruments and capacity to meet the long-term equity and debt financing needed by infrastructure projects. There is a lack of shelf of credible, bankable infrastructure projects, which could be offered for financing to the private sector. Some initiatives have been taken both at the central as well as the states’ level to develop PPP projects; these tend to be isolated cases and have demonstrated a marked lack of consistency. There is also a lack of capacity in public institutions and officials to manage the PPP process. Since these projects involve long term contracts covering the life cycle of the infrastructure asset being created, it is necessary to manage this process to maximize returns to all the stakeholders.