Failure of Operational PPP Projects in India Leading to Private Developer’s Apathy to Participate in Future Projects: A Case Study Based Analysis

Sandeep Ganpat Kudtarkar

doi:10.46281/ijfb.v4i2.693

Sandeep Ganpat Kudtarkar Aruna Manharlal Shah Institute of Management and Research, India https://orcid.org/0000-0002-6937-9405

DOI: https://doi.org/10.46281/ijfb.v4i2.693

Keywords: PPP Projects in India, Financial Returns, Contract and Risk Management, Value for Money, Sponsor Risk, Dispute Risk.

Abstract

The goal of this study is to examine the failure of operational public-private partnership (PPP) infrastructure projects in India. The case study based analysis is done of eleven operational PPP projects from infrastructure subsectors like roads, metro rail, seaports, and power projects to investigate various risks faced during the life cycle of projects. The construction risks like land acquisition delay, change in scope, delay in financial closure resulting in time and cost overrun, revenue risk of not getting adequate revenue during operation phase and legal disputes between the authority and the concessionaire are prominent risks observed in these projects. Mitigating these risks through efficient life cycle contract management and appropriate allocation of risk creates adequate risk-adjusted financial returns to the private developers and value for money for the government. The study concludes that failure in contract and risk management in case of the majority of operational projects resulting in disappointing financial returns is the major reason for the private developer's apathy towards participation in a once successful PPP program in India.

Author Biography

Sandeep Ganpat Kudtarkar, Aruna Manharlal Shah Institute of Management and Research, India

Assistant Professor & PhD Scholar

Aruna Manharlal Shah Institute of Management and Research

AMSIMR, Near MTNL, Ghatkopar West

Mumbai 400086, Maharashtra, India

NMIMS University, Mumbai 400056 (PhD Scholar)

E-mail: [email protected]

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