Public Private Partnership in Infrastructure: A study on Roads and Highway Projects in Andhra Pradesh

Abstract

Infrastructure is defined as a physical framework of facilities through which goods are provided to the public and it is a necessary condition for achieving sustained economic growth. India requires a solid backbone of infrastructure and a similar situation besets AP as well. Historically, investments in the infrastructure sector, particularly in the roads and highways, were being made by the Government mainly because of the large volume of resources required, long gestation period, uncertain returns and various associated externalities. The huge resource requirements and the concern for efficiency has made the Goveniment move from a traditional way of "provider of sendees” to “facilitator and regulator of ser\>ices” This has given way for Public Private partnership models. “PPP means an arrangement between a government or government owned entity on one side and a private sector entity on the other, for the provision of public assets or related services for public benefit, through investments being made by and management undertaken by the private sector entity for a specified time period, where there is a substantial risk sharing with the private sector and the private sector receives performance linked payments that conform to specified, pre-determined and measurable performance standards. ” A.P government is suffering with pacecity funds for infrastructure development activities.PPP is the only option for the government for sustain the infrastructure development programme for accelerating economic growth.