The central government wants to improve capabilities related to public-private participation (PPP) projects. At the same time, he has advocated to increase the acceptance of PPP amidst the indifferent attitude of the private sector towards investment in various areas of India’s infrastructure. The Economic Review of the year 2024-25 states, ‘We need to increase private participation in the infrastructure. This requires preparation of projects, their trust in the risk and revenue partnership arrangements, contract management, resolution of disputes and their capacity to complete projects. ‘
In last year’s economic review, the government raised this issue. The private sector was encouraged to increase investment in capital expenditure and indicated that private participation in infrastructure sectors is still not in accordance with the expectations of the Finance Ministry. The review said, ‘The efforts of the central government will have to fully accept the need for public-private participation in the infrastructure across the country. The interest of private sector in this is equally important. According to the review, to increase private participation, all stakeholders- financial market players, project management experts and planners and private sector coordinated efforts are needed.
It said, ‘The field for concept of projects, for execution of specific innovation strategies and needs to improve the ability to prepare high specialist sectors like contract management, dispute solutions and projects, along with risk and revenue division, Is.’ The review said that despite the untiring efforts of the central government and the efforts of some state governments and public sector undertakings, the need for the country’s infrastructure is not yet met. The review states, ‘It is clear that public sector efforts cannot meet these requirements.
Budget related obligations are at various levels of the government. Private participation should increase in many ways in many important infrastructure sector. These methods include preparing programs and projects, raising money, construction, maintenance, mudification and assessment of impact. ‘ The government’s top economic assessment document also mentions the National Infrastructure Pipeline, National Mudification Pipeline and PM-Mati Shakti to remove obstacles and convenience system.
The review said, ‘Financial market regulators have started several reforms to encourage private participation. Nevertheless, the participation of private companies in many important areas is very low. PPP has also been successful only to some limited areas. Business Standard had already reported that the central government could miss its asset mudification target, with a large -scale performance of the area like Railways. For FY 2025, a target of Rs 1.91 lakh crore is a target.