INTRODUCTION

A public private partnership is a cooperative and collaborative

arrangement between two or more public and private sectors, typically of
a long-term nature (Hodge and Greve, 2007).
A PPP Project means a project based on a contract or concession
agreement, between a Government or statutory entity on the one side and
a private sector company on the other side, for delivering a service on
payment of user charges. The rights and obligations of all stakeholders
including the government, users and the concessionaire flow primarily
out of the respective PPP contracts.
Now a days Public Private Partnerships (PPP) in agricultural provide
opportunities for conducting advanced research, developing new
technologies, and deploying new products for the benefit of small-scale,
resource-poor farmers and other marginalized social groups in
developing countries.
 Meaning and concept
• In India PPP is defined as "a partnership between a public sector
entity and a private sector entity (51% or more of equity is with the
private partner/s) for the creation and/or management of infrastructure
for public purpose for a specified period of time (concession period)
on commercial terms and in which the private partner has been
procured through a transparent and open procurement system"
(Nanda, S.S., 2015).
• The term public private partnership in the present context is
necessarily a collaborative effort between the public and private
sectors contributing for one or more functions like planning, resources
and activities as required to accomplish a shared goal set out by the
partners. It is risk sharing, cooperative and contractual relationships
with flexible ownership between public and private sectors.
 Need for PPP
• Public Private Partnership is most preferred in developing countries
for effective delivery of infrastructure facilities like transportation,
education and health care services as it is more successful there. In
developing countries, rural-urban migration has increased
urbanization at same time socio-economic developments have
increased the demand for infrastructure and also pressure on
maintaining and operating the existing infrastructure. Thus private
sector could be attracted through mutually beneficial agreement for
efficient use of resources, availability of modern technology, better
project design and implementation and improved operation combine
to deliver efficiency.
 Relevance of PPP in Agriculture
• Agriculture, being backbone and support system of rural economy
should be strengthened, if we want paradigm shift in the approach and
its development. With the advent many popular and appropriate
technology, many innovations are also brought in the field of
agriculture. This is now an ominous task before the policy makers and
government to feed the ever increasing population while preserving
and conserving the resources as well.
• Hence, PPP has an immense role to play in agriculture sector. PPP
offers a win-win solution for all stakeholders. PPP allows the
government to tap the private sector’s capacity to innovate. It can be
implemented in a number of areas like agricultural research,
agricultural supply chain management, watershed management,
agricultural extension management, Biotechnology, etc.
PPP Models
• As the government pays only 40%, during the construction stage, the
developer should find the money for the remaining amount.
• Here, he has to raise the remaining 60% in the form of equity or loans.
• There is no toll right for the developer. Under HAM, Revenue
collection would be the responsibility of the National Highways
Authority of India (NHAI).
Advantage of HAM:
• It gives enough liquidity to the developer and the financial risk is
shared by the government. While the private partner continues to bear
the construction and maintenance risks as in the case of BOT (toll)
model, he is required only to partly bear the financing risk.
• The government’s policy is that the HAM will be used in the stalled
projects where other models are not applicable.
BOT Toll Model

In this toll-based BOT model, a road developer constructs the road and
he is allowed to recover his investment through toll collection. This toll
collection will be over a long period which is nearly 30 years in most
cases. There is no government payment to the developer as he earns his
money invested from tolls.
O & M (Operation & Maintenance)

In an O&M contract, a private operator operates and maintains the asset

for the public partner, usually to an agreed level with specified
obligations. The payment for this contract is either via a fixed fee, where
a lump sum is given to the private partner, or more commonly a
performance-based fee.
 Areas of PPP
• Civil Works and Service Contracts.
• Leases and Affermage Contracts.
• Management/Operation and Maintenance Contracts.
• Concessions, BOTs, DBOs.
• Joint Ventures / Government Shareholding in
Project Company.
• Full Divestiture / Privatization.
• The Government of India under Aatma Nirbhar Bharat Abhiyaan
recently announced the role for the private sector in India’s space
programme, including in satellite launches and space-based
services.
• New Space India Limited (NSIL): It is the commercial arm of ISRO
with the primary responsibility of enabling Indian industries to take
up high technology space-related activities.
• It is a wholly-owned Government of India company, under the
administrative control of Department of Space (DOS).
• NSIL is not going to replace ANTRIX which still exists and has
similar functions.
• Antrix was incorporated as a private limited company owned by
Government of India in 1992 as a Marketing arm of ISRO for
promotion and commercial exploitation of space products, technical
consultancy services and transfer of technologies developed by Indian
Space Research Organisation (ISRO).
•NSIL will work with IN-SPACe and enable industry consortia to take on
some of the activities of ISRO.
•IN-SPACe (Indian Space Promotion and Authorisation Centre) is a new
organisation to ensure greater private participation in India’s space
activities under the administrative control of the Department of Space.
•It will assess the needs and demands of private players, including
educational and research institutions, and, explore ways to
accommodate these requirements in consultation with ISRO.
•Major business areas of NSIL are Launch vehicle production, Production
and marketing of space-based services, Building satellites, Transfer of
technology etc (NITI Ayog)
 References
• Rai, C. K., Arti, Kumar, S., Azad, K. A and Kumar, M. (2017). Public
private Partnership in Agriculture: A Stern View. International
Journal of Current Microbiology and Applied Sciences, 6(9): 3510-
3517
SYMBOL OF TRUST