UPSC Mains 2013 · GS III · Q12 · 10 marks · 200 words

Adoption of PPP model for infrastructure development of the country has not been free of criticism. Critically discuss pros and cons of the model.

हिन्दी में

देश में आधारभूत संरचना के विकास में गैर-सरकारी भागीदारी योजना (PPP) मॉडल का अंगीकरण आलोचना मुक्त नहीं है। इस मॉडल के पक्ष-विपक्ष की समालोचनात्मक विवेचना कीजिए।

Investment ModelsInfrastructure

How a topper answered the closest question

Toppers wrote this one in a test series: “What are the challenges faced by Public Private Partnerships (PPP) in highway projects? Do ‘Hybrid Annuity Model’ (HAM) overcome those challenges? Discuss.”

Yarasi Tusharika134 wordsTheir whole copy

Opening

Public Private partnerships (PPP) in road and highway projects have helped to increase the construction of highways, toll collection increase.

Body · points

Diagram
PPP in highways (1) Build operate-transfer model (2) Hybrid annuity model. (3) Toll-operate-collection model.

Challenges faced by PPP

  1. lack of adequate funds and support for government.

  2. Rigid completion deadlines hampered the performance of projects.

  3. Incomplete projects due to administrative bottlenecks; low quality raw materials usage.

  4. lack of profits to the private sector.

  5. Rigidity in agreements.

Hybrid Annuity model

(1) Combines two models i.e., EPC (Engineering, procurement and Construction) and Build operate transfer model.

(2) In this model 40% of expenditure cost is paid by government.

(3) 10-15 years lease is given to private sector for building, operation and maintenance of the roads.

  1. Results were better compared to other PPP models

Close · a summary

Thus PPP models help in building infrastructure and reduces burden on government.

How toppers approach this question, and more on its topic: open the question.

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Source: UPSC, Civil Services (Main) Examination 2013, General Studies Paper III, Q12. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.