With reference to "PuPuP: public-public partnership" (June 6), a public-public partnership is simply a collaboration between two or more public entities to provide or improve public services. Unlike PPPs (public-private partnerships), neither partner in a PuPuP expects to earn a profit from the collaboration. The goal is to improve efficiency and equity. PuPuPs employ basic strategies to leverage the capacity of cooperating public utilities to increase efficiency and reduce operating and capital costs. The failure of PPPs in India is the absence of a regulatory environment and lack of comprehensive database about the projects to be awarded under such schemes. Besides, inadequate provision of details of land acquisition and forest clearances is also a bottleneck in these projects. The private sector is dependent on commercial banks to raise debt for PPP projects. With commercial banks reaching the sectoral exposure limits and large Indian infrastructure companies being highly leveraged, funding PPP projects is getting difficult. Therefore, these difficulties are to be weighed in before embarking on a PuPuP.
Sushil Bakliwal, Jaipur
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