3.1 There is now over 10 years experience in India in the development and use of PPPs for delivering infrastructure services. Policies in favor of attracting private participation have met with varying degrees of success, but real progress has been made in some sectors, first in telecommunications, and now in ports and roads, and with individual projects in other sectors. There has been considerable innovation with different structures now being developed to attract private participation. But at the same time progress has been uneven: there are islands of progress, with some states having undertaken far more PPPs than others, and a much heavier use of PPPs in some sectors than others. And while there are a number of successful projects to the present date, there have also been a number of poorly conceptualized PPPs brought to the market that stood little chance of reaching financial closure. In terms of frameworks for PPPs, some states have made more attempts to develop this, including cross-cutting legislation and the development of cross-sectoral units that play a role in the identification and preparation of PPPs. Others however have worked within the bounds of their existing organizational structure.
3.2 Given the lack of an existing database on PPPs in India, a survey was undertaken both to provide information on the current usage of PPPs as well as the frameworks developed for their implementation. The main sectors of focus are the basic public services excluding power: transportation (ports, airports, roads, and rail), water and sanitation, and other urban infrastructure (solid waste management, light rail, bus terminals).3 This represents the present areas of focus of many state governments in India. The survey covered 12 of the states regarded to have been most active in the development of PPPs, as well as the 3 central agencies undertaking PPPs in the areas of focus.4 The survey also provides some indication of the possible pipeline of PPP projects in India.
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3 We also provide some coverage of other basic services such as the social sectors (education and health) and e-governance, but they are not reflected in the main text charts as the available data are not as comprehensive in their coverage. In consultation with DEA, it was decided to exclude the power sector from the analysis, given the complex issues involved in that sector and the range of other efforts focused specifically on power both within the Bank Group and beyond.
4 This analysis is based on a non-comprehensive survey of PPP activities to-date in 3 central agencies - National Highways Authority of India (NHAI), Ministry of Shipping, Road Transport and Highways (MOSRTH) and Rail Vikas Nigam Ltd. (RVNL)- and 12 states across basic infrastructure sectors, supported by PwC; although it does not cover the universe of PPPs, it reflects most projects in basic infrastructure sectors in the most active states. The 5 infrastructure sectors of focus where PPP contracts have been awarded in the covered states and federal agencies are roads & bridges, ports, airports, rail, and urban, which in turn includes water & sanitation, solid waste management, bus terminals, light rail, ferries and a logistics hub (although for the last 3 sub-sectors there have been preparatory activities but no contract awarded yet). There also has been activity in health & education and e-governance, in addition to sectors not covered in this report such as power, tourism, and other construction (convention centers, industrial, IT & biotech parks, SEZs, and housing). The states covered are Andhra Pradesh, Delhi, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Tamil Nadu and West Bengal (though the survey did not include any awarded PPP project in Orissa, only pipeline projects).See the tables in the Annex for more details.