Role of public-private partnership in sustainable development in India

In face of the global financial crisis and the economic downturn, infrastructure sector plays an important role to counter balance against slowing economic activity and lower consumption. In India the infrastructure sector currently accounts for 26.7% of India‟s industrial output and thus remains a useful tool to balance the economy. Moreover infrastructure is the lifeline of any business activity, proper infrastructure increases business activity manifold. In India, out of the proposed 31,755 km by the National Highways Development Programme, completion achieved is just 28 percent or 9,165 km, even if this project is to be completed by 2012, there will be huge opportunity for companies engaged in highway building sector. This paper attempts to highlight the role of Public -Private Partnership in infrastructure development.. However, it could be found that the investors in both rounds of infrastructure investment in last two decades have limitations (Wu, 2007). The government is now focusing on a public–private partnership (PPP) model for infrastructure creation. A host of private sector players have invested in infrastructure sector, mainly through the BOT model.PPP is recognized as effective way of delivering value for money public infrastructure.