Lucknow: Uttar Pradesh has claimed the top spot with the highest share of about 15 per cent in PPP projects across the country, followed by Maharashtra and Gujarat, a recent Assocham-SREI study said.
“UP again has the highest share of about 22 per cent in terms of value in total PPP investment projects under construction across India, followed by Maharashtra (11 per cent), Haryana (8.5 per cent), Gujarat (6 per cent) and Madhya Pradesh (4.5 per cent),” said the study titled PPP Investment in Indian Infrastructure: Need for growth and development.
The Associated Chambers of Commerce and Industry of India (Assocham), along with infrastructure conglomerate SREI, has conducted this study.
Gujarat has the highest share of 15.5 per cent in infrastructure projects (value terms) that are under operation on the public-private partnership (PPP) model and is followed by UP and Maharashtra (13 per cent share each), Tamil Nadu and Karnataka (almost 8 per cent each).
“A total of about 1,200 projects in different segments of the infrastructure sector with investments worth about Rs 7 lakh crore are being carried out in the PPP mode throughout India,” said secretary-general of Assocham D.S. Rawat while releasing the findings. Interestingly, most PPP investment projects have been terminated in Maharashtra (13 per cent) followed by Chhattisgarh (10 per cent), Gujarat (9 per cent), Kerala (7 per cent) and MP (7 per cent).
“Poor preparations, flawed risk-sharing, inappropriate business models, fiscal uncertainties and vested interests leading to development of skewed qualification criteria are certain key reasons for failure of PPP projects in India,” said Mr Rawat.
The study has suggested the government to set up of an independent institution for overall co-ordination and management of PPP projects in the country. “It should also act as nodal agency with the responsibility of creation of PPP data base, creation and regular updation of model bid documents for all infrastructure sectors, co-ordination with government departments concerned and dissemination of best practices and learning through both successes and failures,” the study said.
India requires huge investment to upgrade its infrastructure and the government expects most of it to come in form of PPP projects.
