PPP is a mode of providing public infrastructure and services by Government in partnership with private sector. It is a long term arrangement between Government and private sector entity for provision of public utilities and services.
PPP mechanism is a major element of India’s infrastructure creation efforts as there is huge level of investment requirement in the sector. The twelfth plan targets to spend $1000 bn to expand infrastructure. Conventional form of finance – the budgetary allocation by the government is not enough to meet this big investment size. So the government at present is making several efforts to modify and energize the PPP (Public Private Partnership) mode of infrastructure generation. A committee chaired by Kelkar also made valuable recommendations to empower the PPP mechanism.