The Indian PPP Experience at

the State Level

Shailesh Pathak, ICICI Venture
Ashwin Mahalingam, IIT-Madras
Executive Roundtable on
PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai
Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 2
PPP Bottlenecks
Institutional
Organizational
Project
L
e
v
e
l
s

Lack of Legislation
Absence of Policies and Frameworks
Increases Time, Transaction Costs
Economic Viability
Social Acceptance
Viable Fees/Tariffs
Inclusive Growth
Equitable Contracts
Project Governance
Management, Regulation and Oversight
Public-Private interface
Too many agencies for coordination and approval
Lack of Capacity


Low Trust between private and public sector
Administrative. Preparing PPPs
Political. Promoting PPPs
Private. Implementing PPPs
Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 3
PPP Enablers
IIPDF, Panel of Transaction advisors ..
PPP Cells
Government or separate entity?
Roles and Responsibilities?
PPP repository
Documentation and Knowledge dissemination
Precendents and Best Practices
Support and Advice
Innovatinve Models
Advocacy groups
.?
Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 4
Transport PPP or non PPP
Intercity Bus Transport
Denationalise routes? Competition?
Roads etc
State highways, Bridges
Inland waterways
waterways & dredging, Jetties
Bulk cargo movement
Railways initiatives
Connecting Links,
RLDA, Logistics Park
Airport
group of airstrips / Merchant airport
Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 5
Urban PPP or non PPP
Cities
Solid waste management
Bus terminals; Capture Bus Terminal value
Parks-cum-commercial centres
Urban redensification
Public places renewal
Museums and Libraries
Convention Centres, even small
Municipal e-Governance
Others
Urban Public Transport
Traffic corridor publicly funded
Rolling stock on PPP
Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 6
Power PPP or non PPP
Power Generation
Price discovery
Land
Water
Fuel linkage
Transmission lines
Align with Powergrid, RLDCs
Distribution franchises
Urban feeders
Rural feeders? Jyotirgram

Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 7
Industries PPP or non PPP
Industrial Parks in PPP
Remote sensing maps
Fallow land
Proximity to transport rail, road
Water availability
Power grid availability

Industrial Water Supply schemes
Technical Education
ITI s
Polytechnics
Focus on employable skill training

Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 8
Tourism PPP or non PPP
Room supply
Hotel running -
PWD IBs and Resthouses- Wayside
amenities on roads; Irrigation
Resthouses; Forest Resthouses
Other Rest Houses
Tourism circuits
Transport connectivity for all circuits
Guides professional and goodwill
guides
Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 9
What else, Practitioners?
Agricultural cold chain infrastructure
Agricultural farms; Sheep and Goat farms
Social Infrastructure PPPs
Health
Education
Higher education
Social safety nets
Logistics

Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 10
Main responsibilities of State
Government
Project conceptualization
Selection of consultants & advisors
Project Preparation
Selection of Contractor/concessionaire-
Bid process management
Construction of project in time- Contract
management
SLAs adhered to- ongoing contract
administration

Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 11
Desirables
1. Introduce supply competition wherever
possible
2. Quick decision making leading to
outcomes
3. Governments morphing from supplier to
procurer
4. Talent & skill shortage supply of
unemployable people: what can you do
about it in your state?

Executive Roundtable on PPPs FOR INFRASTRUCTURE IN INDIA
April 4-5, IIT-Madras, Chennai 12
Way ahead
How can we increase competition levels in
supply?
MoU route or SPV route not desirable at all
Finance Ministers list of issues
Capacity building
Project Pipeline
Enabling environment
Innovative Financing
How about Political will to deliver outcomes?
You can help generate it
Delivery vs defendability?
Bias for action

Thank you