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Tuesday, 10 May 2016

Uttar Pradesh tops with the highest investment in PPP projects

Do you know what does PPP stand for? PPP is the public-private partnership, also known as P3 or 3P where any government or private business is funded by a government or private company under their collaboration or partnership. Among the projects undertaken under the PPP mode, Uttar Pradesh has the highest share of 15 percent. Among the topic five states under PPP, Maharashtra has a share of 12 percent, Gujarat 10 percent, Karnataka 9 percent and Tamil Nadu 6 percent. Hence it is Uttar Pradesh that is on the top among all the five states. Within the country a total of 1200 projects in the PPP mode have been undertaken with a total investment of about Rs 7 lakh crore.

Recently, Uttar Pradesh has gained a lot in terms of growth and development especially under the regime of the current Chief Minister of UP, Akhilesh Yadav. In terms of value Uttar Pradesh owns a share of about 22 percent among all the investment projects in PPP mode. With the implementation of the PPP mode, the growth and development within the state and the country will be at a much faster pace. This entire study and statistics has been conducted by Associated Chamber of Commerce and Industry of India. In case of the infrastructure projects Gujarat is leading and has the highest share of about 15.5 percent.

But it has been found that many projects that had been undertaken under the PPP mode has been terminated in states like Maharashtra, Chhattisgarh, Gujarat, Kerala, Madhya Pradesh. The reason why the PPP projects are failing in India is due to the lack of proper preparation conditions, inappropriate business models, disinvestment and fiscal uncertainties and many other reasons that are not in favor of the development of PPP projects. To make the PPP projects successful and running, independent institutions need to be set up that will look into the overall coordination and manage the projects under the PPP scheme. For successfully installing any PPP project the PPP database must be designed that is to be updated and maintained on a regular basis, all government departments should work in unity so as achieve success on their respective projects.

Uttar Pradesh being one of the most favored destination for setting up of PPP projects and has successfully been able to secure the top position in terms of share holdings of the projects under PPP. To develop a project a huge amount of investment is needed that would contribute towards its goal. With the help of PPP one can overcome the huge investment cost. This cost will help in setting up the business. Also to set up a well-functioning business front, the best facilities along with the latest equipped infrastructure are needed. Due to lack of proper infrastructure, India lags behind in developing the project. It is believed that this support for the huge amount of investment coming from the PPP projects would boost up the Indian economy. The successful installation of the PPP projects has been possible because of the striving efforts of the present government.


There are a few basic requirements that are essential for the PPP projects to succeed in India. Let us have a look at them.
  • The macroeconomic framework that is establishes must be stable in nature.
  • The generation of project revenues must be sustainable.
  • The policies, terms and conditions must be flexible and friendly so that it can attract more investors.
  • There must be sound regulation and maintenance process.
  • Two most essential features that need to be maintained are consistency and transparency in work.
  • The labor laws must be liberalized.
Thus, we find that the investment of PPP projects in India would not only boost up the Indian economy but also open wider channels for the country to the global world. It is due to the efforts of the UP government that many PPP project have been undertaken like construction of roads, buildings, factories and many others.  Although, India is a developing country and we all know that due to lack of funds and proper infrastructural facility the PPP projects are unable to gain success, still it must be kept in mind that if the country is able to attract outside investors to invest within the country under the PPP mode, then very soon India will be one of the fastest emerging economies in the global market.


Article by Anisha Dutta
She is a content evangelist who believes that the Science of today is the Technology of tomorrow. 
She can be reached at https://twitter.com/Anisha_Dutta29

1 comment :

  1. Investment in Uttar Pradesh is gradually increasing there by developing tourism industry. Friendly investment in Uttar Pradesh has given them opprtunity to grow in entertainment industry as well. But indeed it is noticed that PPP projects are constructed as Uttar Pradesh is getting lots of friendly investment.
    Check this amazing article - http://eng.socialsamajwadi.com/investment-boom-in-uttar-pradesh-since-2012/

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