At a glance
- For a long time, India’s PPP frameworks transferred operational risk to private players without providing adequate revenue certainty.
- New and emerging PPP structures like hybrid annuity models, viability gap funding, revenue pooling and payment guarantees are managing to distribute construction, demand and operational risks more equitably.
- Reviving private interest and participation in infrastructure creation will depend on frameworks that attract patient capital by offering predictable cash flows, enforceable contracts and assured downside protection.
India’s infrastructure problem: Planning vs. execution
Without fair risk allocation and operational certainty, large-scale infrastructure projects risk stalling under the weight of implementation stress and delayed clearances. 'Visualised using AI'