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Overview

 
 

Government of India (GOI) is actively promoting Public Private Partnership (PPP) as an effective tool for bringing private sector efficiencies in creation of economic and social infrastructure assets and for delivery of quality public services. India, in the recent years has emerged as one of the leading PPP markets in the world as a result of several policy and institutional initiatives taken by the Central Government.

A PPP Cell has been set up in the Department of Economic Affairs (DEA), Ministry of Finance (MOF). The PPP Cell is responsible for all matters concerning PPPs, including policies, schemes, programmes and capacity building. Besides, the Cell also acts as the Secretariat for Private Partnership Appraisal Committee (PPPAC) and Empowered Institution (EI) for the projects posed for financial support through Viability Grant Fund (VGF).

Some of the initiatives that have been undertaken by the DEA to create an enabling framework for PPPs are as follows:

  • www.pppinindia.com has been developed by the DEA, Ministry of Finance,     Government of India to provide key information related to PPP initiatives in India.

  • The website serves as a hub of information on PPP related policy documents, government guidelines and procedures, model documents, events etc.      

  • A link to online PPP toolkit for 5 sectors is available as a web-based resource that is designed to help improve decision-making for infrastructure PPPs in India. The toolkit covers five sectors. It provides information on the status and extent of PPP initiatives in India at the central, state and sectoral level.

  • The site provides links and contact details of authorities at Central Government and State Government levels involved in policy making and planning of infrastructure projects on PPP.

  • A status of the project proposals received by the PPP Cell for PPPAC, VGF or EI approval is also indicated on the website.

  • Private Partnership Appraisal Committee (PPPAC)
  • PPPAC has been set up to ensure speedy appraisal of projects, eliminate delays, adopt international best practices and have uniformity in appraisal mechanism and guidelines. The PPPAC is chaired by Secretary, Economic Affairs with Secretaries of Department of Expenditure, Department of Legal Affairs, Planning Commission and the Sponsoring Ministry/Department as members to consider and approve the proposals of Central Sector PPP Projects. The approval mechanisms for infrastructure projects have been streamlined by setting up of this Committee.

  • Viability Gap Funding (VGF) for PPP projects
  • DEA, Ministry of Finance has notified a Viability Gap Funding Scheme (Scheme) for providing financial support to infrastructure projects that are to be undertaken through PPP. The Scheme aims to ensure wide spread access to infrastructure provided through the PPP framework by subsidizing the capital cost of their access. The Scheme provides total Viability Gap Funding of up to 20 percent of the Total Project Cost (TPC) of the project. The Project Authority/State government that owns the project may provide additional support of upto 20 per cent of the TPC.  There are 15 different sectors eligible for funding under the Scheme. Details about these sectors and scheme and guidelines can be accessed from the PPP Cellís Website http://www.pppinindia.com/VGF_Home.php.

  • India Infrastructure Project Development Fund (IIPDF)
  • A corpus fund, IIPDF, has been created to provide financial support to fund potential PPP projectís project development expenses including costs of engaging consultants and Transaction Advisor; thus increasing the quality of successful PPPs and allowing informed decision making by the Government based on good quality feasibility reports. The IIPDF supports up to 75 percent of the project development expenses.

  • Standardized bidding and contractual documents
  • DEA has notified standardized bidding and contractual documents for tendering of public projects to private sector. The documents include model Request for Qualification (RFQ) and Request for Proposal (RFP) for the procurement of the preferred bidder; Model Concession Agreements (MCAs) that governs the contractual relationship between the public authority and the private sector specific to a PPP project. The documents have been prepared for different sectors that include Highways (both National and State Highways), Ports, Urban Transport (Metro), and Power sector.

  • Database on Infrastructure Projects
  • An infrastructure projects database (www.infrastructureindia.gov.in) is also being developed by DEA which will be a repository of infrastructure projects being implemented across the sectors in India. It will provide key information on the status of infrastructure projects being executed in India. 

 
 
 
STATES
Andhra Pradesh
Assam
Chhattisgarh
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Orissa
Punjab
Rajasthan
Tamil Nadu
Uttrakhand
West Bengal
 
 
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