Govt considers easier terms for its PPP contracts with private firms

Central and state governments are expanding funding support for projects, but will need the private sector's support

Faced with a strong pitch from officials of the railways, roads and shipping ministries, the Finance Ministry is considering whether contracts signed with private companies for upwards of several decades can be reopened after a sometime.

The officials wanted to know if contract terms can be renewed between a government agency and a firm for public-private partnership (PPP), without running afoul of the vigilance agencies or courts. The agenda, if applied, will only be for future projects, said a source.

India is undertaking its largest works for infrastructure creation, spending more than $125 billion as of 2023. Central and state