Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
in Agriculture in India
Submitted To Submitted By
Dr. Rajshree Upadhyay Shalini Pandey
Professor, Deptt. Of HECM M.Sc. Final, Deptt. Of HECM
College of Home Science, Udaipur College of Home Science, Udaipur
Meaning
A public-private partnership is a contractual agreement between a public
agency (federal, state or local) and a private sector entity.
Through this agreement, skills and assets of each sector (public and private)
are shared in delivering a service or a facility for the use of the general public.
Each party shares risks and rewards potential in the delivery of the service
and/or the facility.
The public partners in a PPP are government entities, including Ministries,
departments, municipalities, or state-owned enterprises.
The private partners could be local or international and may include businesses
or investors with technical or financial expertise relevant to the project.
PPP broadly refers to long term, contractual partnerships between public and
private sector agencies, specially targeted towards financing, designing,
implementing, and operating infrastructure facilities services that were
traditionally provided by the public sector.
PPPs may also include non-government organizations (NGOs) and/or
community-based organizations (CBOs) who represent stakeholders directly
affected by the project.
Effective PPPs recognize that each of the partners -the public and the private
sectors have their comparative advantages in performing specific tasks.
The government‘s contribution to a PPP may take the form of capital for
investment (available through tax revenue), a transfer of assets, or other
commitments or in-kind contributions that support the partnership. The
government also provides social responsibility, environmental awareness, local
knowledge, and an ability to mobilize political support.
The private sector‘s role in the partnership is to make use of its expertise in
commerce, management, operations, and innovation to run the business
efficiently. The private partner may also contribute investment capital
depending on the form of contract. The structure of the partnership should be
designed to allocate risks amongst the partners based on their capabilities to
manage those risks and thus, minimize costs while improving performance.
In a PPP, each partner, usually through legally binding contract(s) or some other
mechanism, agrees to share responsibilities related to implementation and/or operation
and management of a project.
This collaboration or partnership is built on the expertise of each partner that meets
clearly defined public needs through appropriate allocation of:
Resources
Risks
Rewards
Responsibilities
Common elements of PPP includes:
a contract or an arrangement;
the provision of public infrastructure or services;
the transfer of risk from the public sector to the private sector;
a reward system based on performance or output; and
a focus on service delivery.
Definition
According to IMF(International Monitory Fund):
“Public-private partnerships refer to the private sector financing, designing,
building, maintaining and operating infrastructure assets traditionally provided by the
public sector.”
Different
Models of PPP
Supply and
Turnkey
management Lease Concessions
projects
contracts
In this form of PPP, the Government defines and grants specific rights
to an entity (usually a private company) to build and operate a
facility for a fixed period of time.
The Government may retain the ultimate ownership of the facility
and/or right to supply the services.
In concessions, payments can take place both ways:
concessionaire pays to government for the concession rights and
the government may also pay the concessionaire, which it provides
under the agreement to meet certain specific conditions.
Example of this type of agreement is BOT (Build-Operate-Transfer)
and its variation
BOT (Build-Operate-Transfer)
Modified
design-build • Contracts yield time and cost saving benefits; also enable efficient risk-
(turnkey) sharing and improve quality
contracts
Performance
based • Suitable for sectors (water supply, sanitation, solid waste management
management/ and road maintenance) constrained by the availability of economic
maintenance resources to improve efficiency
contacts
Need of PPP in Agriculture
Slow growth rate of agriculture in India (average growth rate of
2.7% per year)
Agriculture is the primary source of livelihood for about 58 per
cent of India’s population
the country accounted for 2.07 percent of global agricultural
trade in 2012
India, the second-most populated country in the world, has to
meet food consumption needs of around 1,210 million people.
This is a key demand driver of agricultural growth in the country.
India’s consumption expenditure is likely to reach USD3.6 trillion
by 2020, up from an estimated USD1.0 trillion in 2010
Development of Hybrid and genetically, modified seeds,
mechanisation, irrigational facilities needed which requires more
institutional credits.
On‐time delivery
Increased efficiency
Advantages
Leads to innovation
Increased accountability
Shared risk
Integration of resources
Challenges of PPP
Misperceptions between public and private sectors with regard to intentions, goals
and credibility of achievements.
Cost in PPP projects are likely to be greater than for traditional government
procurement processes
Private sector will do what it is paid to do and no more than that , Government
responsibility continues
After taking expertise private sector may take advantage in the data relating to
project..
• Just 86 PPP projects worth USD157.1 billion were awarded until 2004
1991-2006 • Large-scale private financing has been limited to Vishakapatnam and
Tirupur
• Growth in PPP to 758 projects costing USD70.1 billion by July 2011 from
After 2006 450 projects costing USD45.7 billion in November 2009