Public private partnership in Infrastructure, Interdisciplinary issues in Indian Commerce Video Lecture | Interdisciplinary Issues in Indian Commerce - B Com

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- as a part of massive modernization
plan Government of India
intake to connect around 700,000
villages of India which rolls by 2019
the investment requirement for this plan
is around 1.5 trillion dollars so it is
really a big challenge and the question
comes in our mind is how government is
going to arrange such a huge amount in
such a short span of time so let's find
out the answer to this question which
lies in the investment model called P P
P so what is this P P P investment model
P P P stands for public-private
partnership or PPP project means a
project based on a contract or sensation
agreement between a government or
statutory entity on one side and a
private sector company on the other side
for delivering a service on payment of
users charge this is what the website
infrastructure India dot geo V dot in
define PPP does in short in PPP projects
government and private payers are
partners of each other taking care of
the huge investment needs now along with
TPP the term viability gap funding is
used frequently so let's see what it
means government sometimes provides
financial support to some PPP projects
this financial support is either
one-time payment or in installments
especially to support projects that are
economical justified but fall short of
financial viability like road connecting
ring
villages or road development from the
shadows to a smoothness Vacarro sheer
you may ask why some projects are not
financially viable the basic reasons
what it might be longer station i
development period then there are other
returns like attracting more private
player sometimes it is to address the
development needs and sometimes it is to
provide better accessibility options now
let's look at the significance or
benefits of TPP to government and
privately
so first let's see significance to
government this model provides required
capital while meeting public needs it
sells in attracting private capital to
fund public budgets it has the potential
to improve the quality of service made
available at lower cost
one of the main benefits for government
is sharing of financial load and rating
PPP also help in development of local
private sector stability in the form of
joint ventures and subcontracting the in
short all these help to supplement the
limitation expected capacity now
significance to private players
liability Gascon provides or we can say
government provides required gap capital
up to 20 percent why race is made by
private player thus reducing the need
for full funding either by government or
by private rail government
infrastructure projects are the big
scale projects through the englishman
with government private sector gain
exposure to big
it can further help to attract even
bigger foreign projects in future as
with this experience private player can
expand the span of quality services and
showcase their operational efficiency
important for balance it since there is
a sharing of financial load and realism
and even get protection during market
downturn contracts with government helps
promote goodwill for private players as
it serves as prestige point for them and
get opportunities of joint ventures and
subcontracting with capabilities locally
as well as when contracts are awarded to
foreign claims so there are two things
happening here domestic players
benefiting from foreign collaborations
and smaller domestic we're benefitting
by collaboration with bigger cement is
great and the last point here is that
this gives private clip another
opportunity to showcase their ability to
work smoothly with multiple partners now
with benefits there are also certain
risks involved with PPP model so let's
have a look on it cause for TPP projects
are likely to be greater than 4 radical
government procurement processes private
firms and their laser shows cautiousness
about accepting major risks beyond their
control private sector will do what it
is paid to do and no more than that even
the long nature of this project and the
complexity associated it is difficult to
identify all possible contingencies
during project development even and
issues may arise that we are not
anticipated in the document by the pipe
is at the time of entering the contract
so
to have a closed-loop activity models
and it penetrates let's take an example
of voltage breeze which connects the
banks of river Narmada that is unclear
and baruj in Gujarat which is also a
part of National Highway number 8 it was
breached by British in 1881 and has been
running for unbelievable
132 years it is very narrow bridge and
due to the tight space only one small
vehicles can pass through it at a time
due to which cars run in close proximity
in opposite direction to each other and
there is no space for divider engine one
has to stop too late the other pass
first this bridge which is for close to
1.5 kilometers and there is every
possibility of car dashing each other
plus there is no possibility of
expansion of group does tight space and
Forte's pose danger to computers which
means there are frequent accidents and
long traffic jams on both sides so how
to resolve in species
obviously by building broadly a broad
new bridge
but then what about the big investment
required for this project and who is
going to invest in it with the
government alone or private players or
both to tackle this problem government
took the help of PPP
investment models government invited a
private player to build a new bridge on
good business that is built operate own
and transfer which is a type of PPP
investment model once completed it is
said to be India's longest extra those
bridge that is
Kable supported and will be only one of
the four such bridges in the country
does we saw in the last example that a
problem which lingered for so many years
was easily being taken cheers by a
public-private partnership model this
bridge will result in better
connectivity and transportation it will
also erase locals as well as neighboring
areas to benefit economical this is the
magic of PPP this video was brought to
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