๐จ๐ป๐ณ๐ผ๐น๐ฑ๐ถ๐ป๐ด ๐๐ป๐ฑ๐ถ๐ฎ’๐ ๐ฃ๐๐ฏ๐น๐ถ๐ฐ ๐ฃ๐ฟ๐ถ๐๐ฎ๐๐ฒ ๐ฃ๐ฎ๐ฟ๐๐ป๐ฒ๐ฟ๐๐ต๐ถ๐ฝ๐ ๐ฆ๐๐ผ๐ฟ๐ ( ๐ญ๐ต๐ต๐ฌ๐ – ๐ฃ๐ฟ๐ฒ๐๐ฒ๐ป๐)!
This timeline of PPPs in India traces the legal, fiscal, and policy developments that transform the landscape establishing it as a go-to model for infrastructure financing in India, compiled by Nandinie Gupta, associated with CFA’s Infrastructure Finance thematic area.
Please stay tuned for our explainer series that dives into a historical and national overview of PPPs and their journey in India
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Over the past twenty years, Public-Private Partnership (PPP) projects have emerged as an approach for funding development initiatives in India. These projects are being executed across various sectors, including roads, railways, airports, ports, energy, tourism, metro systems, telecommunications, water, sanitation, and solid waste management.
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By analyzing the Government of India’s PPP database, the following slides review 9,245 projects from the 1950s to 2019. This analysis sheds light on the sectors and sub-sectors that have attracted investments, explores historical trends in financing infrastructure through PPPs, and identifies the geographical regions that have received project investments.
The Public Private Partnership Appraisal Committee (PPPAC) – one of the central bodies in the PPP project approval mechanism – was formed in 2006, to oversee, and evaluate central government PPP projects.
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One of the primary tasks of the institutional body has been to ensure that the projects are feasible, viable and balanced in terms of risk reward distribution.
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According to PPPAC database a total number of 358 projects, worth Rs 6.76 lakh crores, have been sanctioned.
These slides visually analyse the 358 projects in terms : a) sectoral & sub-sectoral breakdown b) a Y-o-Y analysis in terms of Number and Costs c) Regional Distribution d) Mapping the projects based on Sponsoring Agency and their respective sectors.
Viability Gap Funding (VGF) Scheme for PPPs in India – A Visual Analysis
In continuation with policies to bolster the institutionalisation of PPPs the Department of Economic Affairs (DEA) initiated a financial mechanism in 2005 to provide financial aid to financially unviable PPP projects.
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In November 2020 the Cabinet Committee on Economic Affairs, approved the Continuation and Revamping of the Scheme for Financial Support to PPPs in Infrastructure – Viability Gap Funding (VGF) Scheme till FY2024-25, with an outlay of Rs 8100 crores.
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The revamped scheme was bifurcated into two subschemes namely:
a) Sub scheme 1: This supports projects having an operational recovery of 100%. Projects supported by this subscheme include: Waste Water Treatment, Water Supply and Solid Waste Management.
b) Sub scheme 2: The scheme supports projects having an operational recovery of 50%. Projects supported under this scheme are mainly demonstration/ and pilot social sector projects.
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Following up with the previous visual analyses around dealing with PPP Policy, and the Public Private Partnership Appraisal Committee (PPPAC), the following slides present a visual representation of VGF projects:
i)sectoral analysis of VGF projects
ii) Their Y-O-Y trends
iii) Nationwide Allocation of VGF projects
iv) A breakdown of implementing bodies of VGF by sector
Design & Analysis by: Nandinie Gupta, Gaurav Dwivedi, and Raktim Majumder