Global Journal of Commerce & Management Perspective
Open Access

ISSN: 2319-7285

+44 1300 500008


Generic Issues of Public Private Partnership in Indian States with Special Reference to National Highways Projects -An Overview


Physical infrastructure is an integral part of development of an economy and provides basic services that people need in their every day life. The contribution of infrastructure to economic growth and development is well recognized both in academic and policy debates. Well developed physical infrastructure provides key economic services efficiently, improves the competitiveness, extends vital support to productive sectors, generates high productivity and supports strong economic growth. Here Physical infrastructure covers road sector especially National Highways. Over the years, the basic infrastructure in India has been developed to an extent, which is not sufficient enough while considering India’s geographical and economic size, its population and the pace of overall economic development. Infrastructure bottleneck has been a serious concern in India in its way of robust pace of economic progression. Many advanced economies and fiscal constrained developing countries have developed their physical infrastructure successfully either through private participation or through public-private partnership (PPP) model. To develop the Indian infrastructure to a world class and to remove the infrastructure deficiency in the country, the investment requirements are mammoth, which could not be met by the public sector alone due to fiscal constraints and mounting liabilities of the Government. This would call for participation of private sector in coordination with the public sector to develop the public infrastructure facilities. In this direction, the economic reforms initiated in the country provide forth the policy environment towards public-private partnership (PPP) in the infrastructure development. Specific policies have also been initiated from time to time to enhance the PPP in infrastructure building. The subject of interest in this paper is on the problems of PPP concessionaire in road projects especially in National highways and Toll collection in Indian states. This paper identifies some generic issues such as Land Acquisition, Lack of shelf of credible bankable infrastructure projects, State Support Agreements (SSA), Environmental, forest & wildlife clearances, Regulatory Independence, Centre and state agreement, Cost and Time Overruns, Government Guarantee, Decision support system and highlights issues in Land acquisition & wild life clearence and puts forth suggestive measures to enhance the private participation in government projects

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