At the central level, the Cabinet Committee on Economic Affairs (CCEA) in 2005 approved the process of approving of Public Private Partnership (PPP) projects. Subsequently, a Public Private Partnership Approval Committee (PPPAC) was set up comprising the following:
1. Secretary, Department of Economic Affairs (in the Chair)
2. Secretary, Planning Commission
3. Secretary, Department of Expenditure
4. Secretary, Department of Legal Affairs and
5. Secretary of the Department sponsoring a project
The Committee is aided by the Department of Economic Affairs, Ministry of Finance, for servicing the proposals. The Committee may co-opt experts as necessary.
Department of Economic Affairs, Ministry of Finance, vide Notification No. 10/32/2006-Inf dated April 2, 2007 has modified the approval of PPPAC projects. The modified guidelines set out the following criteria for approval of PPP projects sponsored by Central Government Ministries, statutory authorities or other entities under their administrative control;
• For projects, wherein the estimated project cost is greater than Rs.100 Crores but less than Rs.250 Crores, the Committee shall comprise of Secretary, Department of Economic Affairs, and Secretary of Ministry sponsoring the scheme.
Department of Economic Affairs, Ministry of Finance through its Office Memorandum issued a Notification for Modification in Delegation of powers for Formulation, Appraisal and Approval in respect of National Highways Projects dated March 12, 2015. ln view of the decision of the Cabinet Committee on Economic Affairs dated 9.7.2014 to increase the threshold, of submission of projects for approval by the Cabinet Committee on Economic Affairs, on the recommendations of Public Private Partnership Appraisal Committee, from Rs.500 crore to Rs. 1000 crore, the delegation of powers in respect of Ministry of Road Transport and Highways has been revised.
• For National Highways projects with estimated project cost less than Rs.25 Crores, the project is to be appraised by the Ministry of Roads Transport and Highways and approval of the same is to be accorded by the Secretary, Road Transport and Highways.
• For National Highway projects with estimated project cost greater than Rs.25 Crores but less than Rs.1000 Crores, the project is to the appraised by SFC chaired by Secretary and approved by the Ministry of Roads, Transport and Highways.
• For National Highway projects with estimated project cost greater than Rs.1000 Crores, appraisal is to be carried out by PPPAC and approved by Cabinet Committee on Economic Affairs.
For detailed information on the process, please refer to Guidelines - Formulation, Appraisal and Approval of Public Private Partnership projects, published by the Secretariat for the Committee on Infrastructure, Government of India and Modification in Delegation of powers for Formulation, Appraisal and Approval in respect of National Highways projects, published by the Department of Economic Affairs, Government of India.
In addition to the above, each public entity has its own rules of governance and administrative set-ups. Prior to the procurement of any project under the PPP framework, based on the rules applicable to the respective department, an approach towards getting approvals needs to be adopted.