PPP model a hit in UP: Assocham study

LUCKNOW: Uttar Pradesh has scurried past other states when it comes to implementation of projects under the Public-Private Partnership (PPP) mode.

A study carried out by Assocham, a leading body of industrialists, has found that Uttar Pradesh has been able to secure maximum investment of Rs 99.9 thousand crore, accounting for 14.8% of total investment in 21 states in the PPP mode.The western Indian state of Maharashtra stood second with 12.1% and Gujarat third with 10%.

The Public-Private Partnership (PPP) may not have been a grand success on the national landscape but Uttar Pradesh accounts for the highest number of projects under this mode, followed by Maharashtra, Gujarat, Karnataka and Tamil Nadu. Put together these five states claimed about half of Rs 6.70 lakh crore of investment under PPP, the ASSOCHAM study has revealed.

The top five states occupied around 50% of the total PublicPrivate Partnership projects in the country. The study which analysed data up to September, 2015 , pointed out a total of 1191 projects under the Public-Private Partnership mode with an overwhelming 67% related with roads and bridges, 12% with ports and about six per cent with the energy sector. On the other hand, a large number of crucial areas with desperate gaps in infrastructure remained not too attractive for the Public-Private Partnership model. These included water sanitation, education, healthcare, railway tracks and cold chains.

“In the last two decades, the private sector has invested nearly USD 300 billion in infrastructure. However, the PPP model has taken a backseat temporarily because several of the projects faced delays in getting multiple permissions while others got stuck up due to various disputes, resulting in time and cost overruns”, said Sunil Kanoria, Assocham president.

Other states which have realised the investments under partnership with the private sector include Haryana, Madhya Pradesh, Andhra Pradesh, Odisha, West Bengal , Rajasthan, Telangana, Kerala, Bihar, Himachal Pradesh, Chhattisgarh, Jammu and Kashmir, Punjab, Jharkhand, Assam and Uttarkhand.