Indian Railways PPP
The Indian Railways has been exploring Public-Private Partnerships (PPPs) for infrastructure development and modernization of railway stations. PPP models have been successful in other sectors namely the roads sector. The railways have identified opportunities for PPPs in the development of new railway stations, redevelopment of old stations, and operation of passenger trains. The government is reworking the PPP model to make it more attractive to investors. The railways have identified 36 stations for redevelopment through PPP mode. Public-Private Partnerships (PPP) are formally established agreements between public and private parties to share risks and benefits in the provision of public services and infrastructure. PPPs can help address challenges faced by the Indian railway sector, such as a shortage of funds, a backlog of maintenance and modernization projects, and a lack of expertise in certain areas. The Indian Railways Stations Development Corporation (IRSDC) was created in 2012 as a special purpose vehicle (SPV) for redeveloping stations and building new ones through PPP. PPPs can provide access to private sector capital, technology, and management expertise, and share the risks and rewards of the project between the public and private sectors. PPPs can speed up infrastructure construction and unlock innovation’s richness of benefits.