Public-private partnership (PPP) is now the accepted shorthand for denoting private investments in India’s infrastructure development.
India’s British-era infrastructure construction saw quite a few projects as private enterprises. Sterling bonds with guaranteed returns financed and operated railways, tramways, and electricity distribution. Tata Power was established in 1911. Other private power plants existed too. After independence, the story unfolded across eight stages of private capital waning and waxing through India’s infrastructure journey.
The state as sole builder (1947-1992): Established in 1950, the Planning Commission controlled most national investment decisions. Large infrastructure investments did happen, but with public funding. Such projects included giant hydroelectric projects and the expansion of the railway network – but private capital was not involved. With an uptick in gross domestic product (GDP) growth after the 1991 liberalisation moves, policymakers started seriously considering the engagement of private capital as the “infrastructure deficit” rang alarm bells.
