Why is Public Private Partnership (PPP) required in Infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (150 words) [2022]
Public Private Partnerships (PPPs) are required in infrastructural projects in order to leverage the expertise, resources, and risk-bearing capacity of the private sector to meet the needs of the public sector. PPPs can help to address the challenges of financing, designing, constructing, and maintaining complex infrastructural projects, such as rail and transportation systems.
In the case of the redevelopment of railway stations in India, PPPs can play a particularly important role. This is because the railway sector in India faces significant challenges, including a shortage of funds, a backlog of maintenance and modernization projects, and a lack of expertise in certain areas. PPPs can help to address these challenges by providing access to private sector capital, technology, and management expertise, and by sharing the risks and rewards of the project between the public and private sectors.
In recent years, the Indian government has promoted PPPs as a key model for the redevelopment of railway stations in the country. Under this model, private sector companies are invited to participate in the redevelopment of railway stations through a competitive bidding process. The private sector company is responsible for the design, construction, financing, and operation of the railway station, while the Indian Railways retains ownership of the land and assets.
