Impediments to Public-Private Partnership Projects In Aftermath of Covid-19 Pandemic

Abstract

India has enjoyed impressive economic growth over the past two decades. The country possesses the world’s second-largest road system, fourth-largest rail system, and fifth-largest electric power generating manufacturing capability. Despite progress and good prospects for the future, investors continue to face many challenges, which have worsened after Covid-19. Nearly 90% of the world’s population has faced travel restrictions, a sharp decline in the global economy during the Covid-19 pandemic. There had been significant downward trend in the infrastructure investment during Pandemic, keeping in view the slowdown of private investment in infrastructure; the present study was carried out to investigate the complexities in PPP infrastructure projects by looking at the elements that impede the successful implementation of PPP in India. The study relies on primary and secondary data. To better understand the constraints to PPP implementation, a questionnaire survey was performed to collect the viewpoints of partners who have a good grasp of the PPP concept and have worked on PPP projects in India. There was a total of 94 valid submissions. The overall findings show that the top five challenges for speeding PPP in India are ‘Inefficient and inequitable risk allocation in PPPs,’ ‘Over leveraged debt and paucity of equity,’ ‘Weak regulatory and institutional frameworks,’ ‘Delay in issuing clearances by authorities,’ and ‘Land selection and acquisition.