DMPQ: What is PPP ? Certain issues are faced by PPP. Examine that. 

PPP is public private partnership where a private entity enters into a contract with a government entity to provide public asset or service in which the private party provides its managerial expertise and operational efficiency.   Remuneration in this is linked to performance. PPP model was envisioned for infrastructure sector but now it is present in all the sector.

In the recent past PPP model is facing several issues:

  • Non availability of capital: Due to the recession period and the global slow down, the twin balance sheet syndrome has erupted. This has lead to paucity of funds.
  • Land acquisition and Environment clearance issue. The clearance is a complex issue and sometimes subjected to red tapism.
  • PPP model in its nascent stage was a successful affair but now competition is huge. But aggressive bidding and traffic overestimation makes the project economically unfeasible.
  • The excessive tolls and burden on tax payer is another issue. The toll remains for perpetuation which not only is a burden on the pockets but it affect free movement of goods.
  • Confusion over the contractual agreement like revenue sharing or production sharing model.


Soln: (additional info)

  • Setting up an independent regulator
  • Frame a national PPP
  • Amend PCA to clarify cases of graft and genuine errors in decision making
  • Swift dispute resolution mechanism
  • Hybrid annuity model
  • Viability gap funding



KPSC Notes brings Prelims and Mains programs for KPSC Prelims and KPSC Mains Exam preparation. Various Programs initiated by KPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Hope we have satisfied your need for KPSC Prelims and Mains Preparation

Kindly review us to serve even better

KPSC Mains Test Series 2022

20 Quality mock tests and GS Mains Notes

Mains Test Series and Notes

Mains Printed Notes (With COD)

KPSC Prelims Test Series 2022

24 Quality mock tests and GS Prelims Notes

Prelims Test Series and Notes

Prelims Printed Notes (With COD)

[jetpack_subscription_form title=”Subscribe to KPSC Notes” subscribe_text=”Never Miss any KPSC important update!” subscribe_button=”Sign Me Up” show_subscribers_total=”1″]

error: Content is protected !!