Applications of PPP Model in Key Infrastructure Sectors to Stimulate Economic Growth in India

Abstract

Public-Private Partnership (PPP) is now accepted as an effective and novel instrument for stimulating economic growth all over the world, especially in mixed economies. In an emerging economy like India the importance of PPP model has gained greater momentum for increasing and sustaining the current pace of socio-economic development. From the 1990s the Government of India (GoI) is also encouraging PPP based projects as a modern mechanism for faster economic growth, especially in key infrastructure sectors like powers, transports and communications. Against the backdrop of the financial crisis, this article seeks to examine the conceptual ideas and investment-friendly policy framework of PPP model in the Indian context. It also intends to highlight the recent policies and practices relating to PPP projects in selected key infrastructure sectors in India.