Examine the development of Airports in India through joint ventures under Public-Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard ?

1. Private sector expertise for port development → eg Adani developing ports abroad in Sri Lanka.

2. Better pool of resources → address fund crunch in port dev. sector

3. Various models provide flexibility

(4) BOT, EPC, HAM etc. (4) Facilities enhancement on ports (eg) Cargo storage infra (5) Can help in reducing turn-around time of ships by better advanced facilities at ports (6) Reduce logistic costs of Indian economy → 13% to 7% (7) Innovative tech. by private sector can make ports → world class (8) Cargo handling capacity can be enhanced by private sector (9) Est. of new ports such as JNT with substantial private sector investment (10) Free up govt. resources for other sectors such as port led dev & connectivity to ports (11) Sagarmala initiative also leverage PPP model for meeting target

Challenges (1) high initial cost → ports require substantial capital outlay (2) large gestation period → deter private investments (3) Low enthusiasm & private firms interests in port handling activities (4) Renumeration → difficulty in cost realisation (5) Balance sheet concerns → corporates face significant losses in infra (6) Difficulties in distributing responsibilities between govt. & private sector (7) Rise of accidents, ports mishandling & compromise on quality

→ Innovative Models such as HAM ways for effective PPP → SAGARMALA → incentivise private investment → Learn from foreign practices