Ahmedabad: Gujarat has the highest share of 15.5 per cent in infrastructure projects with a total value of over Rs 1.6 lakh crore that are under operation in the public-private partnership (PPP) mode across India and is followed by Uttar Pradesh and Maharashtra (13 per cent each), Tamil Nadu (eight per cent) and Karnataka (seven per cent) in this regard, an ASSOCHAM-SREI joint study released today said.

With regard to overall PPP projects, UP with 15 percent tops the table while Gujarat (10 %) is at 3rd place behind Maharashtra (12).
“A total of about 1,200 projects in different segments of infrastructure sector with investments worth about Rs seven lakh crore are being carried out under PPP mode throughout India,” according to the study titled ‘PPP Investment in Indian Infrastructure: Need for growth and development.
Of these, about 650 projects worth over Rs 4.5 lakh crore with about 67 per cent share are there in roads and bridges followed by over 100 projects in ports sector (12 per cent share) with an investment worth over Rs 80,700 crore, energy (six per cent) with over 150 projects with investments worth over Rs 41,000 crore, SEZ (five per cent share) with investments worth over Rs 30,000 crore, water sanitation (2.6 per cent) and others.

There are 478 infrastructure projects worth over Rs 3.3 lakh crore in various segments like special economic zones (SEZs), ports, energy, water sanitation, airports, tourism, healthcare, cold chain and others that are under construction in the PPP mode. While 498 projects with investments worth over Rs 1.6 lakh crore are under operation, there is no information about 150 PPP projects with investments worth over Rs one lakh crore and 65 projects with investments worth over Rs 77,000 crore have been terminated, the study said.

While Uttar Pradesh (UP) tops with highest share of about 15 per cent in the projects being carried out under PPP mode across India followed by Maharasthra (12 per cent), Gujarat (10 per cent), Karnataka (nine per cent) and Tamil Nadu (six per cent) amid top five states in this regard. Besides, UP also has the highest share of about 22 per cent in terms of value in the total PPP investment projects under construction across India followed by Maharashtra (11 per cent), Haryana (8.5 per cent), Gujarat (six per cent) and Madhya Pradesh (4.5 per cent).

Interestingly, most PPP investment projects have been terminated in Maharashtra (13 per cent) followed by Chhattisgarh (10 per cent), Gujarat (nine per cent), Kerala (seven per cent) and MP (seven per cent). “Poor preparations, flawed risk-sharing, inappropriate business models and fiscal uncertainties to vested interests leading to development of skewed qualification criteria are certain key reasons for failure of PPP projects in India,” the study noted.The study has also suggested the government to set up an independent institution for overall co-ordination and management of PPP projects in the country.

“It should also act as nodal agency with the responsibility of creation of PPP data base, creation and regular updation of model bid documents for all infrastructure sectors; co-ordination with concerned government departments and dissemination of best practices and learning through both successes and failures,” the study observed.

DeshGujarat