UP tops infrastructure projects under PPP mode

However, Gujarat has the highest share of 15.5% in PPP infrastructure projects (value terms)

Uttar Pradesh (UP) has clocked the highest share in infrastructure projects being carried out under the public private partnership (PPP) mode across India.

UP topped the chart with highest share of 15 percent in PPP projects followed by Maharashtra (12 per cent), Gujarat (10 per cent), Karnataka (9 per cent) and Tamil Nadu (6 per cent), a joint study by Associated Chambers of Commerce and Industry of India (Assocham) with infrastructure conglomerate SREI said.

UP also has the highest share of 22 per cent in terms of value in total PPP investment projects followed by Maharashtra (11 per cent), Haryana (8.5 per cent), Gujarat (6 per cent) and Madhya Pradesh (4.5 per cent), the study titled PPP Investment in Indian Infrastructure: Need for growth and development noted.

However, Gujarat has the highest share of 15.5 per cent in PPP infrastructure projects (value terms), followed by UP and Maharashtra (13 per cent share each), Tamil Nadu and Karnataka (8 per cent each).

A total of 1,200 projects in different infrastructure segments with investments worth Rs 700,000 crore are being carried out under PPP throughout India, Assocham Secretary General D S Rawat said while releasing the study.

Of these, 650 projects worth Rs 450,000 crore with 67 per cent share are dedicated to roads and bridges followed by 100 port projects (12 per cent) with investment over Rs 80,700 crore, energy (6 per cent) with 150 projects with investments worth Rs 41,000 crore, SEZ (5 per cent) with investments worth Rs 30,000 crore etc.

While, about 500 PPP projects with investments of Rs 160,000 crore under operation, there is no information about 150 PPP projects with investments worth Rs 100,000 crore and 65 such projects with investments worth over Rs 77,000 crore have been terminated.

Most PPP projects have been terminated in Maharashtra (13 per cent) followed by Chhattisgarh (10 per cent), Gujarat (9 per cent), Kerala (7 per cent) and Madhya Pradesh (7 per cent).

Poor preparation, flawed risk-sharing, inappropriate business models and fiscal uncertainties to vested interests leading to development of skewed qualification criteria are key reasons for failure of PPP projects in India, Rawat observed.

The study noted stable macroeconomic framework; sound regulatory structure and effective regulation; sustainable project revenues; investor friendly policies, transparency & consistency; liberalisation of labour laws and corporate governance are basic requirements to achieve success of PPP projects.