Entry 7 By Arth Trivedi.

Are Public-private Partnerships beneficial in a world as corrupt as now?

PPP stands for public private partnership. It is a model of agreement between two or more public and private sectors.

Water, power, transport and communication are the four pillars of infrastructure development by PPP as an alternative.

But the challenges that we face today through this agreements are as follows;

• Private companies always look forward for acquiring more profit with a limited number of employees, which results in job loss.

.•No provision for re-negotiation.

• It increases the operation cost and hikes the fare.

• There is lack of clarity over the degree of risk transfer to the private players in areas, such as asset construction cost, operation risk, non-insurable risk etc.

• Lack of clarity is also evident in concessional agreement, revenue sharing and tariff structure framework.

• The projects are also delayed due to land acquisition, cost overruns, long gestation periods and lack of funding and investment.

On the government's side; PPPs have been affected adversely by factors such as delays inland acquisition and clearances, shifting of utilities and inadequate due-diligence by project developers.

Also, due to pandemic, the regulation in each sector has  delayed for approximately 2 years. So, no one is there to sort the agreement ,for who shall bare those losses!

The reason for challenges in PPP model are not only through private sector but bilateral .

So these are my sole reasons for not considering PPP model beneficial.

           - by Arth Trivedi

                1st year MBBS