PPP Investment Models: HAM, Swiss Challenge, Kelkar Committee

PPP framework needs to be reoriented

  1. Context: Minister of State for Power, said that entire PPP framework needs to be reoriented to make it more investor friendly
  2. Relevance: If India has to develop at the kind of pace that we all wanted to and provide bare necessities to its people by 2022, then clearly the PPP model is unavoidable
  3. Why? It will be the engine in growth in the infrastructure sector and have to evolve the right regulatory framework which should be simple and predictable
  4. Minister’s suggestion: Penalty should be a 2 sided affair in PPP model and not just restricted to the private body as partnership means sharing the fruits of development and the losses
  5. Way ahead: If any framework is created then it should provide penalty for private sector and the other side

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