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What is PPP model of working in Government projects?

Date: 07 Sep 2016    Group: Opinion About    Category: Miscellaneous   

We often come across news items in the media that certain project is being developed under PPP model by the Government. What exactly is PPP model and how it is different from the normal Government work model? What are its advantages and disadvantages, if any?
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Author: Venkiteswaran.    08 Sep 2016      Member Level: Diamond     Points : 5  (Rs 3)    Voting Score: 0

PPP means Public-Private-Partnership. Generally large projects are either initiated, funded and implemented by the government or large corporations. That is either they will be in the public sector or in the private sector.

However there are projects important for public service or country's infrastructural development. But either the government by itself or private entities by themselves may not be able to fund and implement fully. So in such cases, considering the need and the utility of the project for the people and development of the nation, a public-private participation is made.
The Kochi international Airport is one fine example of PPP model. Later on Bengaluru and Hyderabad airports are also came by PPP.
PPP has the proper mix of optimum and essential control of the government, but the best sustainable business entrepreneurship also.

Sometimes the PPP may be on BOT basis-Build Operate(for some period. This is resorted to in case of Toll bridges and roads.

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