Q. Why is Public Private Partnership (PPP) required in infrastructural projects? Examine the role of PPP model in the redevelopment of Railway Stations in India. (150 words, 10 Marks)
Why the Question?
UPSC PYQ – CSE Mains – 2022
Keywords of the Question
- Public Private Partnership (PPP)
- Infrastructural projects
- Role of PPP model
- Redevelopment of Railway Stations in India
Directive Word
Examine – Look in close detail and establish the key facts and important issues surrounding a topic. You should try and offer reasons as to why the facts and issues you have identified are the most important, as well as explain the different ways they could be construed.
How to approach this Question?
Introduction:
- Define Public Private Partnership (PPP).
- Briefly mention the importance of PPP in infrastructure projects.
Body:
- List reasons why PPP is required in infrastructure projects (e.g., funding, expertise, efficiency).
- Discuss the role of PPP in the redevelopment of railway stations in India.
- Mention specific examples or case studies.
- Highlight benefits and challenges.
Conclusion:
- Summarize the key points.
- Conclude with the overall impact of PPP on infrastructure development in India.
Note: Please note that the following ‘answers’ are not ‘model answers’ nor are they synopses in the strictest sense. Instead, they are content designed to meet the demands of the question while providing comprehensive coverage of the topic.
Answer Key
Introduction
Public Private Partnership (PPP) is a collaborative model where the government and private sector share resources, risks, and rewards in infrastructure projects. This model leverages the strengths of both sectors to achieve efficient and effective project outcomes.
Body
Reasons for PPP in Infrastructure Projects:
- Funding: PPP helps bridge the funding gap by attracting private investment.
- Expertise: The private sector brings technical expertise and innovative solutions.
- Cost-Effectiveness: Private entities often operate more efficiently, reducing costs.
- Time-Bound Execution: Private sector involvement ensures timely project completion.
- Risk Sharing: Risks are distributed between the public and private sectors.
Role of PPP in Redevelopment of Railway Stations in India:
- Developing Railways is Costly: The high cost of developing and maintaining railway infrastructure necessitates private investment. For example, the redevelopment of the Habibganj railway station in Bhopal was undertaken through a PPP model.
- Improve Operating Ratio: PPP can help improve the operating ratio by increasing efficiency and reducing operational costs. The Bibek Debroy Committee emphasized the need for PPP to enhance railway efficiency.
- Increased Revenue Source: PPP projects can create additional revenue streams through commercial utilization of railway land and facilities. The redevelopment of Gandhinagar railway station includes a five-star hotel, generating extra revenue.
- Better Services: Private sector involvement ensures better passenger services and amenities. The Anand Vihar Terminal in Delhi, redeveloped under PPP, offers improved facilities.
- Increased Competition: PPP introduces competition, leading to better service delivery and innovation. The Indian Railways Station Development Corporation (IRSDC) has been instrumental in promoting PPP for station redevelopment.
- Kelkar Committee: The Kelkar Committee on PPP projects highlighted the importance of PPP in infrastructure development and recommended measures to enhance the effectiveness of PPP models in India.
Conclusion
PPP is crucial for infrastructure development due to its ability to combine public oversight with private efficiency. In the context of railway station redevelopment, PPP has proven to be a transformative model, enhancing service quality and infrastructure while ensuring government control and oversight. The successful examples of Habibganj, Gandhinagar, and Anand Vihar stations illustrate the potential of PPP in revolutionizing India’s railway infrastructure.
Mind Map
