ISO 9001:2015

ROLE OF PUBLIC PRIVATE PARTNERSHIP (PPP) MODEL IN INFRASTRUCTURAL DEVELOPMENT IN INDIA AND IT’S FINANCING

Adequate infrastructure plays an important and vital role in the development and growth of any nation. A large extent of its development and growth would depend upon the availability of infrastructural facilities. Infrastructure not only plays an important role in the development process but also it also contributes a lot in improving the well-being and standards of living of the countrymen. It ensures a higher growth rate of the economy and leads an economy on the path of new heights of success and sustainable development. Fast pace of growth for any nation or economy is not possible without having the adequate facilities of infrastructure. A huge amount of fund and capital requires to develop physical infrastructure like transportation (roads, railways, waterways airways etc.) and sanitation network and other necessary infrastructure. It may lead to build up the monetary pressure on public authorities because it requires a huge capital expenditures. Developing and an aspirant country like India needs developed and improved infrastructural facilities in order to maintain uninterrupted flow of logistics across the country. Therefore, in India Public-Private Partnership (PPP) model can play a pivotal role to foster the growth story. As India is developing its economy and a massive urbanization process is taking place. It all needs a huge quantum of capital. The present study tries to point out the active role of PPP model in financing the massive infrastructural process. PPP model has reduced the cost of capital and it is easily accessible and approachable. Not only in India but also PPP model is being used by many countries as it allows introducing new entrants and players in the market. Thus, it enhances and allows the availability of substantial fund for the Government.

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Keywords: Physical Infrastructure, Economic Strain, Public-Private Partnership, Sustainable Funds.


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