In the light of the problems faced by public-private partnerships in India, give recommendations on the future plan of action.
In short
PPPs in India suffer from unclear policy, weak agency capacity, poor risk allocation, unviable revenue models and land and approval delays, so the future plan needs dedicated PPP cells, clear risk-sharing, viability gap funding and digital monitoring. Platforms like PRAGATI can track projects in real time and speed interventions.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 246 words
Policy and Governance
Andhra Pradesh’s SPSEs, accounting for 6.69% of GSDP, face governance and arrears issues, underscoring the need for unified PPP policies and dedicated cells for capacity building. Establishing specialized PPP cells with trained professionals can enhance project appraisal and risk management.
Project Viability and Execution
Aggressive bidding on optimistic traffic forecasts stalled many highway BOT projects, reflecting poor revenue models and land acquisition delays; streamlining approvals via digital platforms like PM GatiShakti is essential. Clearer risk allocation, especially shifting land and regulatory risks to the public sector, can improve project delivery.
Institutionalizing Best Practices
Codifying risk-sharing frameworks in state legislation will boost investor confidence. Andhra Pradesh should also adopt successful PPP models from sectors like roads to standardize contracts and dispute resolution.
Capacity Building and Technology
Training officials and integrating digital project management platforms will improve PPP outcomes. Regular capacity-building programs will strengthen contract management and reduce implementation delays.
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Infrastructure in India10 questions
Asked in 4 of 8 sittings since 2008
Most tested: Public-private partnership: scope, problems, and restructuring.
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