Adoption of PPP model for infrastructure development of the country has not been free of criticism. Critically discuss pros and cons of the model. (UPSC 2013)

PPP has become a key instrument for roads, ports, airports and urban infrastructure, combining public purpose with private capital, technology and management.

• Pros: It bridges the infrastructure funding gap, reduces pressure on the budget, and can speed up execution through private efficiency and accountability.
• Risk sharing, including models like Hybrid Annuity, lowers upfront public spending and may improve asset maintenance.

• Cons: Poorly drafted contracts often shift demand, land and regulatory risks unfairly to private players.
• Weak project preparation, slow clearances and disputes cause delays and cost overruns, while bank-dependent financing stresses both firms and banks.
• High user charges can reduce equity, and regulatory uncertainty discourages investment.

Thus, PPP works best with realistic project design, fair risk allocation, strong regulation and speedy dispute resolution.