Uttar Pradesh has claimed the top spot with the highest share of 15 per cent of the total PPP projects across India. Maharashtra (12 per cent) and Gujarat (10 per cent) come after Uttar Pradesh.
Uttar Pradesh has claimed the top spot with the highest share of 15 per cent of the total PPP projects across India. Maharashtra (12 per cent) and Gujarat (10 per cent) come after Uttar Pradesh.
A recent study conducted by the Associated Chambers of Commerce and Industry of India (Assocham) with infrastructure conglomerate SREI, says that, “UP again has highest share of about 22 per cent in terms of value in the total PPP investment projects under construction across India followed by Maharashtra (11 per cent), Haryana (8.5 per cent), Gujarat (six per cent) and Madhya Pradesh (4.5 per cent)”.
Assocham secretary-general D.S. Rawat, while releasing the findings of the chamber’s study, said that a total of about 1,200 projects in different segments of infrastructure sector with investments worth about Rs 7 lakh crore are being carried out under PPP mode throughout India.
Gujarat has the highest share of 15.5 per cent in infrastructure projects (value terms) that are under operation based on the PPP mode and is followed by UP and Maharashtra (13 per cent share each), Tamil Nadu and Karnataka (almost 8 per cent each).
About 500 PPP projects with investments worth over Rs 1.6 lakh crore under operation, there is no information about 150 PPP projects with investments worth over Rs 1 lakh crore and 65 such projects with investments worth over Rs 77,000 crore have been terminated.
Almost 73 per cent of the total investments worth over Rs 3.3 lakh crore attracted by infrastructure sector in various segments that are under construction in the PPP mode are concentrated in roads and bridges.
Interestingly, most PPP investment projects have been terminated in Maharashtra (13 per cent) followed by Chhattisgarh (10 per cent), Gujarat (nine per cent), Kerala (seven per cent) and MP (seven per cent). “Poor preparations, flawed risk-sharing, inappropriate business models and fiscal uncertainties to vested interests leading to development of skewed qualification criteria are certain key reasons for failure of PPP projects in India,” said Mr Rawat.
The study has also suggested the government to set up an independent institution for overall co-ordination and management of PPP projects in the country.
