Infrastructure financing: Public Private partnerships in India

Infrastructure plays a crucial role in the development of an economy. Lack of good quality infrastructure is always a bottleneck which needs to be addressed. The total investment in infrastructure including roads, railways, ports, airports, electricity, telecommunications, oil gas pipelines and irrigation is estimated to have increased from 8.0% in 2011 to 9–10% in 2012 in India. A large number of PPP projects have taken off, and many of them are currently operational in both the centre and the states. In the budget 2012–13 Indian government has strongly emphasized the need of Public Private Partnership in the infrastructure projects. The present paper evaluates the PPP framework in relation to infrastructure financing in India.