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The infrastructure deficit in India is continuing regardless of the relative catch-up in recent years. The Asian Development Bank, in its report titled “Meeting Asia’s Infrastructure Needs", has estimated that $4.40 trillion is needed to fix India’s infrastructure deficit by 2030. That entails more than $250–$300 billion of spending every year for the next 10–12 years, compared to recent spend rates of $110–$120 billion per year. Majority of this has to come from the private sector estimated at a contribution of at least $100 billion every year for the next 10–12 years, which could involve a potential borrowing of at least $60–$70 million a year.Public-private partnerships (PPPs) play a vital role in spurring economic growth of a country. In India, regardless of which political party is at the center, public-private partnerships have had very reasonable success rate. The collaborations between the corporate world and the public sector have brought in effective and efficient processes and techniques required for the development of infrastructure in the country.· PPPs in India have integrated public infrastructure with the superior financing and maintenance provided by private enterprises which has led to the generation of employment, resources and knowledge transfer· PPPs are ensuring the effective utilization of state assets in a manner that is productive as well as profitable. Innovation and excellence characterize the PPPs that have emerged across the years in India.· Infrastructure created under PPP Projects is of a better quality. This has led to the development of many good airports, ports and commercial establishments across India. India needs more basic infrastructure and PPPs are the best way to accomplish this.· Speedy and cost-effective projects in sectors such as power, technology and infrastructure have led to great value for money for the taxpayers of the country.· Frequent collaborations, JVs, and partnerships between the government and private sector have generated job potential as well as growth in key economic and social sectors.In spite of all these, more needs to be done by the government to revitalize the PPPs in India by addressing core issues, such as restructuring PPP contracts through an objective process, broadening and deepening access to long-term credit and tightening procurement processes and timelines.Author: Srikanth Bhat
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