Infrastructure Development and the Role of Public-Private-Partnership (PPP)
Contents: Part I: Infrastructure Policy and Public-Private-Partnership (PPP). 1. Infrastructure development and upgradation policy in India. 2. Public private partnership (PPP) for infrastructure development. Part II: Energy Needs, Sources and Management. 3. Energy needs: challenges, strategies and institutional arrangements. 4. Electricity policy and reforms. 5. Coal resources and utilization. 6. Petroleum and natural gas. 7. Renewable energy sources. 8. Atomic power for civil use. 9. Energy conservation and environment. Part III: Transport Modes and Services. 10. Transport sector: deficiencies and strategies. 11. Indian railways. 12. Roads and road transport. 13. Ports and shipping. 14. Civil aviation. Part IV: Telecommunications, Information Technology (IT), Broadcasting and Postal Services. 15. Telecommunication services. 16. Information technology (IT) and IT-enabled services. 17. Broadcasting and postal services. Part V: Special Economic Zones (SEZs). 18. Economics of Special Economic Zones (SEZs). 19. Special Economic Zones (SEZs) in India. Part VI: Water Resources and Irrigation. 20. Water resources management and looming crisis. 21. Irrigation programmes/schemes. Part VII: Rural Infrastructure and Services. 22. Rural housing and electrification. 23. Rural transport and communications. 24. Rural water supply, sanitation and cleanliness. Part VIII: Urban Infrastructure and Services. 25. Approach to urban development. 26. Smart cities mission. 28. Urban transport policy and services. 29. Urban water supply, sanitation, sewerage and solid waste management. Bibliography. Index.
Infrastructure is generally defined as the physical framework of facilities through which goods and services are provided to the public. Its linkages to the economy are multiple and complex, because it affects production and consumption directly, creates positive and negative spillover effects (externalities), and involves large flows of expenditure. Generically, it has the following distinct components: (a) energy (electricity, coal, petroleum and natural gas, renewable energy sources and atomic power for civil use), (b) transport (railways, roads and road transport, ports and shipping and civil aviation), (c) telecommunications and information technology, (d) special economic zones (SEZs), (e) harnessing water resources and irrigation, (f) rural infrastructure (housing, transport, communications, water supply and sanitation) and (g) urban infrastructure (housing, transport, slum clearance/development, water supply, sanitation and sewerage and solid waste management).
Till recently, as the government implemented and financed the bulk of infrastructure outlays, all the attendant project risks were also borne by the government. Resource mobilisation, mainly domestic, was through pre-emption of funds from banks and insurance companies backed by issue of dated securities. Foreign funds—mainly in the form of project-specific aid from bilateral and multilateral sources—supplemented the domestic resources. Hence, infrastructure financing was relatively simple and straightforward, but undoubtedly inefficient and lacking accountability.
Public-private-partnership (PPP) is a mode of providing public infrastructure and services by the Government in partnership with the private sector. It is a long-term arrangement between Government and private sector entities for the provision of public utilities and services. In view of the investments made/management provided by private sector entities, there is risk sharing as well as performance-linked payments made by the Government to the private entities. PPP concessions can either be sustained by user charges collected by the concessionaire or through annuity payments made by the Government. In case annuity payments are made, they are typically borne by the Government out of the annual budgetary allocations spread over time and are essentially in the nature of deferred budgetary payments.
