Public Private Partnership for Infrastructure Development

Public-Private Partnerships (PPPs) are an absolute necessity in India as all levels of the government in the country (i.e., federal, state, and local) are facing budgetary deficits. PPPs in various spheres of economic activity can bridge the gap between the capacity of the state to grow and the factors which are pulling it behind. In a successful PPP model, all the stakeholders (i.e., the government, the people, and the private partners) pose a disciplinary mechanism to each other. The present chapter seeks to study the policy for PPPs in the Indian state of Punjab as also the institutional framework for the same. It also seeks to examine the feasibility of using PPP model for the much-needed development of the agriculture sector in the state. The fiscal situation of the state and its indebtedness along with the populist policies of the government do not leave any room for either the maintenance or the creation of any new infrastructure in the state. Both rural and urban infrastructure in Punjab can be strengthened through the PPP route. The chapter focuses on the problems of Punjab economy and the role of PPPs in fixing the same.