PPP model of Indian government-Examples
Some of the successful or failure examples of PPP models of Indian government are:-
CASES OF SUCCESSFUL PPP MODELS:
1.) IN TRANSPORT SECTOR:
A.) SECOND VIVEKANANDA BRIDGE (now Sister Nivedita Bridge) in Kolkata:-
>>This bridge is one the first BOT projects, undertaken in 1995.
BOT was one of the earliest model of PPP. Other than sharing project cost, the private bidder was to build, maintain, operate the road and collect toll on the vehicular traffic. The bid was given to private company offering to share max. toll revenue to the govt.
>>The concession agreement was signed in September;2002.
>>The consortium members are from USA, UK, Mauritius and India.
>>Though the financial close was delayed by one year, the construction thereafter was almost on time and the bridge was commissioned on July4, 2007.
>>This bridge also won award for excellence for the year 2007 under the Foreign Bridge Project Category from the American Segmental Bridge Institute. Total project cost of INR 640 (USD 128 millions). The concession period of the project is 30 years.
B.) MUMBAI METRO:-
>>First MRTS project in India being implemented on Public Private Partnership (PPP) format.
>> DMRC (Delhi Metro Rail Corporation) prepared the master plan for Mumbai Metro.
>>The Private party involved was- Reliance Energy Ltd.
>>Total Project cost- Rs. 2356 Crores
First phase-2006-1011. mass transit corridor from Andheri to Ghatkopar.
C.) UNDERGROUND CAR PARKING SYSTEM CITY- Kolkata, West Bengal:-
>>Year of execution- April 2007.
>>Parking in central Kolkata, the heart of this mega city, has always been a hassle is the case with most of the inner city areas. In an attempt to address the situation, the Kolkata Municipal Corporation (KMC) decided to utilize the rights to underground space and undertake the parking project as a Public Private Partnership project on a Build-Own-Operate-Transfer (BOOT) basis for 20 years.
>>The Private parties involved were- KMC and Simplex.
2.) IN HEALTH SECTOR IMPROVING THE HEALTH OF POPULATION :
A.) YESHASVINI HEALTH SCHEME IN KARNATAKA :-
>> It is a health insurance scheme targeted to benifit the poor.
>> It was initiated by Narayna Hrudayalya, a super speciality heart hospital in Bangalore and by cooperatives of the Govt. of Karnataka.
>> The incentive of getting treatment in private hospital with govt. paying half of premium attracts more members to the scheme.
>> Cardholders could get access free treatment in 160 hospitals located in all districts of the state for any medical procedure costing up to Rs. 2 Lakhs.
>>Premium is deposited in the account of a charitable trust, the regulatory body for implementing the scheme.
>> Recognised hospitals have been admitted to the network throughout Karnataka known as NWH.
B.) UTTARANCHAL MOBILE HOSPITAL AND RESEARCH CENTRE :-
>> It is a 3-way partnership among the Technology information, Forecasting and Assessment Council (TIFAC), Govt.of UTTARANCHAL & BIRLA INSTITUTE OF SCIENTIFIC RESEARCH (BISR).
>> Motive behind the partnership was to provide health care and diagnostic facilities to poor and rural people at their doorstep in the difficult hilly terrains.
>> TIFAC and STATE GOVT. shares the fund sanctioned to BISR on equal basis.
CASES OF FAILURE :
1.) >>In the case of the new Chennai airport, the tussle between Airports Authority of India (AAI) and the private consortium on controlling rights became a case in point.
>>The impediments faced while inaugurating the new Chennai airport throw open more questions than answers.
>> The government’s decision to hand over the terminals to private parties has made the AAI extremely dissatisfied because they were and are striving for having a complete control! Further ubiquitous red tape played its usual role in delaying the project that consequently failed to meet deadlines not once or twice but over a dozen times.
>> And running parallel to this, corruption has no lesser a role to play either. From power companies to telecom giants, wherever there is involvement of private companies in sync with the government, the unholy trail of corruption can be seen decaying the best of models.
2.) The Vadodara-Halol Toll project suffered due to mistaken traffic projections, due to which proposed government incentives were stripped off from the project, thereby raising both policy and revenue risks for the involved parties.
3.) The Delhi-Gurgaon expressway was a victim of mammoth red-tapism where the lack of coordination of more than 15 civic bodies whose approvals were necessary came out in the open in the shabbiest manner possible.
4.) In the same lines, the Karnataka Urban Water Supply Improvements project suffered due to continued lack of proper coordination between three bodies associated with the project.
5.) The Delhi Airport Metro Express was shutdown for 6 months when its operator Reliance Infrastructure pointed out cracks that had developed on its metro pillar structures. Then followed the typical blame game with the involved parties blaming each other for the faults.