A municipal government, for example, may be heavily indebted and unable to carry out a capital-intensive construction project, but a private company may be interested in financing its construction in exchange for receiving operating profits once the project is completed. NITI Aayog has developed a model concession agreement for the operation and maintenance of electric buses in cities through PPP on Operating Expenses (OPEX), a copy of which can be found on the NITI Aayog website in the Publications section. According to the proposed model, the private partner must bear the necessary investment costs (CAPEX) for the purchase of electric buses and for the operation and maintenance infrastructure, while the state transport authority bears the operating costs per kilometre (including the supply parameter). The framework can be used to develop city-specific concessions for the introduction of electric buses and to enable the government`s plan to promote zero-emission vehicles. Finally, as in any situation where property rights and decision-making rights are separated, public-private partnerships can cause complex problems between principal and agent. This can facilitate corrupt transactions, payments to political cronies and the general activity of rents by fostering the link between private parties who make important decisions about a project from which they will benefit and responsibility to taxpayers who pay at least part of the bill and who may hold the pocket in terms of final responsibility for the outcome of the project. weakened. Infrastructure in India is poor compared to similar developed countries. [3] The Indian government has identified public-private partnerships (PPPs) as a way to develop the country`s infrastructure. In the 1990s, during India`s first wave of liberalization, various attempts were made to promote PPPs. However, in some sectors – such as water and sanitation – it has failed. India was perceived as too risky and private sector participation was very resilient.

It was only in the first half of the 2000s that the first PPPs were signed and implemented. Infrastructure construction in India requires high capital expenditures and there is a supply deficit. More than fifty percent of major infrastructure development projects in the state of Maharashtra are based on 3P. Projects using the 3P model have also been carried out in Karnataka, Madhya Pradesh, Gujarat and Tamil Nadu. Rooftop solar photovoltaic (photovoltaic) gives access to green electricity to a large number of people using structures already in place – a must for overcrowded urban areas where space is scarce. Public-private partnerships have made these rent-a-roofs a success throughout India. The state of Gujarat`s deep experience with rooftop solar PPPs specifically designed to overcome complex constraints is a model widely used throughout the country and has implications for other emerging economies. Vertical is actively working to deepen the scope of public-private partnerships as the preferred mode for the implementation of infrastructure projects.

The goal is to create world-class infrastructure limited in time and attract private sector and institutional capital to infrastructure. This volume responds to the need to develop a model document that reflects best practices, in particular from the point of view of public policies on the one hand and the bankability of projects on the other. In addition to all the benefits associated with such a document, it would also improve the possibilities of obtaining up to 20% of the cost of capital by subsidizing the central government`s profitability gap coupled with the long-term debt of the India Infrastructure Finance Company (IIFC) to finance up to 20% of the project costs. Public-private partnerships involve collaboration between a government agency and a private company that can be used to finance, build and operate projects such as public transport networks, parks and convention centres. Funding a project through a public-private partnership can allow a project to be completed earlier or make it possible in the first place. Public-private partnerships often involve tax concessions or other operating income, protection from liability or partial property rights over nominally public services and ownership to the private sector, for-profit corporations. .