LUCKNOW: Uttar Pradesh has claimed the top spot with the highest share in public-private partnership (PPP) projects across India, followed by Maharashtra and Gujarat, a recent Assocham-SREI study said.
"UP again has the highest share of about 22% in terms of value in total PPP investment projects under construction across India, followed by Maharashtra (11%), Haryana (8.5%), Gujarat (6%) and Madhya Pradesh (4.5%)," said the study titled 'PPP Investment in Indian Infrastructure: Need for growth and development'.
The Associated Chambers of Commerce and Industry of India (Assocham), along with infrastructure conglomerate SREI, has conducted this study.
Gujarat has the highest share, at15.5%, in infrastructure projects (value terms) that are under operation on the PPP model and is followed by UP and Maharashtra (13% share each), Tamil Nadu and Karnataka (almost 8% each).
"A total of about 1,200 projects, in different segments of the infrastructure sector, with investments worth about Rs 7 lakh crore are being carried out in the PPP mode throughout India," said Secretary General of Assocham D S Rawat while releasing the findings.
Interestingly, most PPP investment projects have been terminated in Maharashtra (13%) followed by Chhattisgarh (10%), Gujarat (9%), Kerala (7%) and Madhya Pradesh (7%).
"Poor preparations, flawed risk-sharing, inappropriate business models, fiscal uncertainties and vested interests leading to development of skewed qualification criteria are certain key reasons for failure of PPP projects in India," said Rawat.
The study has suggested to the government the setting up of an independent institution for overall co-ordination and management of PPP projects in the country.
"It should also act as nodal agency with the responsibility of creation of PPP data base, creation and regular updation of model bid documents for all infrastructure sectors, co-ordination with government departments concerned and dissemination of best practices and learning through both successes and failures," said the study.
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