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PPPs must combine public purpose with private-sector capabilities: Delhi LG T S Sandhu

PPPs must combine public purpose with private-sector capabilities: Delhi LG T S Sandhu

New Delhi [India], October 13 (ANI): Delhi Lieutenant Governor Sardar T S Sandhu on Tuesday said public-private partnerships (PPPs) should not be viewed merely as an alternative source of financing but as a framework that combines public purpose with private-sector capabilities, clearly defined responsibilities and accountability.
Addressing a capacity-building programme on “Leveraging Public-Private Partnership: Policy, Benchmarks, Partnership Frameworks and Outcomes” at Guru Gobind Singh Indraprastha University (GGSIPU) in Dwarka, LG Sandhu stressed that PPPs are not suitable for every public service and that the choice of model must depend on the nature of the project and the outcomes expected by citizens.
He said government officers must assess the suitability of a PPP by considering the capacity of the public authority, the scope for private-sector participation and the distribution of risks.
Sandhu highlighted the importance of public-private partnerships in advancing Delhi's development priorities and the vision of Viksit Delhi@2047, particularly in sectors such as urban transport, healthcare, education, water management, waste processing, renewable energy and digital governance.
He said these priorities were increasingly interconnected and could not be planned or delivered in isolation.
Emphasising the need for a comprehensive approach, the Lieutenant Governor asked government officers to evaluate projects across their entire lifecycle rather than limiting their assessment to departmental responsibilities.
A project may be technically feasible but financially unsustainable, attract private investment but fail to provide affordable services, or be completed on schedule but encounter operational difficulties because maintenance arrangements were inadequately planned, he observed.
Such concerns, he said, must be addressed during the planning stage rather than after implementation begins.
Sandhu outlined key principles for successful PPPs, including sound project preparation, time-bound institutional coordination and measurable accountability.
On project preparation, he stressed the need for feasibility assessments, financial and legal due diligence, realistic demand projections, stakeholder consultations and clearly defined performance standards. He also called for risks to be assigned to the party best equipped to manage them.
On institutional coordination, he emphasised the importance of clearly defined responsibilities and time-bound decisions involving government departments, regulators and local bodies.
He further called for robust accountability mechanisms, including measurable performance indicators, monitoring arrangements, incentives, penalties, dispute-resolution mechanisms and transparency throughout procurement and performance evaluation.
Referring to the Centre's infrastructure development approach under the PM Gati Shakti initiative, Sandhu said Prime Minister Narendra Modi had emphasised integrated planning from the initial stages through development and utilisation.
The Lieutenant Governor welcomed the capacity-building programme for bringing together the Delhi government, academia and industry, with GGSIPU serving as the Lead Knowledge Institution under the State Institution of Transformation.
He said the proposed PPP Playbook for government officers should be practical and action-oriented, offering clear guidance on identifying suitable projects, assessing feasibility, structuring contracts, allocating risks, coordinating approvals and monitoring performance.
Sandhu also stressed the importance of examining projects that had faced difficulties, noting that understanding why a partnership underperformed could be as instructive as studying successful projects.
He said appropriate private-sector participation could help advance public objectives across Delhi's key development sectors, provided projects were designed around public needs, sound risk allocation and transparent accountability. (ANI) 

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