Govt Developing PPP Model To Promote Infrastructure Development

The government is working on a sophisticated framework for the public-private partnership (PPP) model to promote infrastructure development, Finance Secretary Arvind Mayaram has said.

"What we need to do is to have a more sophisticated PPP framework which we are working on now. Which means a framework that looks at PPPs in a manner where there's flexibility to factor in the changes in the circumstances that run over a period of 25-30 years," he said at a Ficci event.

Mayaram also highlighted the need to de-stress the PPP model, which is facing various regulatory hurdles. "There's a strong case to see whether we can look at developing a framework which is going to decide what stress is, who is responsible for stress, what is causing the stress and how we deal with it?... We would meet to now look at what a stress is and how it can be defined," he said.

Regarding the risks associated with PPP projects, Mayaram said that the government alone cannot take the whole responsibility, adding that the risk should be shared between the private sector and the government.