http://www.economist.com/news/finance-and-economics/21568397-indias-love-affair-public-private-partnerships-faces-stern-test-rippp
When it came to creating new infrastructure in India, the private sector took the lead over the public sector. But the recent trends show otherwise.
Nothing illustrates this better than the troubles faced by several trophy public-private partnerships in India. These partnerships are mainly deals ‘for private firms to build or run public infrastructure that fall short of outright privatization.’
Many private sector run infrastructure projects are losing money and many government run projects are blooming. An example is that of the fancy airport in the capital city of India, Delhi. The airport is facing huge losses and the metro in the same city, that is government run, is blooming. The saddest part is that in the past five years, there has been massive investment by the private sector in the infrastructure business and most of it is going down the hill.
The problem lies in the gap between the expectations of the investors and the unpredictability of the outcomes of these ventures.
1 comment:
These private enterprises are being placed in the spotlight for running out of funds due to trying to place public funds in different areas. THese private companies cannot make a profit on the things they are investing in and are trying to move society forward but you cannot push something if you cannot afford it.
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