PUBLIC PRIVATE PARTNERSHIP IN

INDIAN RAILWAYS
SWATI.M.MINDE
ROLL NO :- 30

DEFINITION OF PPP
Public

private partnerships (PPPs)are agreements

between government and the private sector for
the purpose of providing public infrastructure,
community facilities and related services.
E.g. Private sector managing commercial risks
and responsibilities: Construction, operation and
financing risks
State political risk, land acquisition.

TYPES OF PPP
Service

Contract
Management Contract
Lease contract
Concessions
Build Operate Transfer (BOT)
Joint Venture

WHY USE A PPP MODEL?

Focus

on outputs
Better value for money over the lifetime of the
project
Better asset utilisation & social & economic
benefits
PPPs allow the injection of private sector capital

PUBLIC PRIVATE PARTNERSHIP IN INDIAN

RAILWAYS
The

major part of Private sector participation in IR

is going to be through Public- Private Partnership
(PPP) Model.
INDIAN Railways (IR) has formulated a new
public private partnership (PPP) policy that will
allow international suppliers to form joint ventures
with existing production units and workshops.

NEED FOR PPP IN INDIAN RAILWAYS

Indian

Railways Tryst with PPP

Container Train Operations (CTOs)
Railways Infrastructure for Industry Initiative
Other Initiatives

GOVERNMENT POLICY ON PPP IN INDIAN RAILWAYS

A comparison of the projects which are in the

process of being implemented through PPP
and the size of IR yields the conclusion that
the PPP does not even form a drop in the
ocean of its operations.
The reasons for the same have been identified as
follows:
Political Climate
Enforceability of the Contract
Threat of Private monopolies

PROJECTS THROUGH THE PPP MODEL

In the past Indian Railways had made several

attempts to rope in private participation in areas
such as catering, wagon ownership and leasing
and joint ventures for rail infrastructure projects.
These efforts were, however, limited in scale and
scope.

 Operation of container trains and Construction

of Private sidings, ICDs and rail side warehouses
Construction of Dedicated Freight Corridor
(Delhi-Mumbai and Delhi Howrah) with a
large component of PPP
High Speed Corridors
World Class Railway Stations, Passenger
amenities and Commercial utilization of land

CONCLUSION
Public-private

partnerships (PPPs) are a

mechanism for government to procure and
implement
public
infrastructure
and/
or services using the resources and expertise of
the private sector. Where governments are facing
ageing or lack of infrastructure and require more
efficient services, a partnership with the private
sector can help foster new solutions and bring
finance.