PPP models in infrastructure

1. Public-private partnership
projects
Chap

2. PPP Projects
• “PPP means an arrangement between a government or statutory
entity or government-owned entity on one side and a private sector
entity on the other, for the provision of public assets and/ or related
services for public benefit, through investments being made by
and/or management undertaken by the private sector entity for a
specified time period, where there is a substantial risk sharing with
the private sector and the private sector receives performance linked
payments that conform (or are benchmarked) to specified, pre-
determined and measurable performance standards.” (Source: DEA
,Ministry of Finance, GOI And Asian Development Bank)
Exclusionary list
• •Any Engineering Procurement Construction (EPC) contract asset is
not retained by the private sector after 3 years from completion of
construction;
• Any arrangement for supply of goods or services for a period of up to
three years;
• Any arrangement or contract that only provides for a hire or rent or
lease of an asset without any performance obligations and other
essential features of a PPP.

3. PPPs in simple terms
• Though, there is no single definition of PPPs, the primary aim of
this cooperation broadly refers to long-term, contractual
partnerships between the public and the private sector agencies,
specifically targeted toward financing, designing, implementing,
and operating infrastructure facilities and services that were
traditionally provided by the public sector

4. PPP-Characteristics
•
 Government's role is one of facilitator and enabler by assuming social, environmental and political risks; private
partner's role is one of financier, builder and operator of the service or facility and it typically assumes construction
and commercial risk.
 The Government remains accountable for service quality, price certainty and cost-effectiveness (value for money)
of the partnership.
 The PPP process involves a full scale risk appraisal since the private sector assumes the risk of non-performance of
assets and realizes its returns if the assets perform.
 PPPs deliver efficiency gains and enhanced impact of the investments. They lead to faster implementation, reduced
lifecycle costs and optimal risk allocation.
 PPP does not involve outright sale of a public service or facility to the private sector.
•

5. PPP is PPP is not
 Better procurement
 Acceleration of infrastructure provision and faster
implementation
 Public sector reform with better strategic planning
for improved quality of service
 Building and maintaining good infrastructure for
providing better services to the users
 Sharing of risks between most appropriate parties
because Public and private sectors working together
 Generation of additional revenues for enhanced
public management
 Free infrastructure
 Just about involving the private sector
 Just building infrastructure with high up-front costs
 Privatisation, simple concessions, outsourcing or
property development

6. TYPES of PPP Models
• There are numerous PPP models and many vary in terms of the level of
control they provide to the private sector and each necessitates a unique
mechanism to set up, administer, and deliver the PPP. Also, the PPP can
take a range of contractual forms where both the private and the public
sector divide the responsibilities while simultaneously taking the risks.
According to Asian Development Bank (2000) and World Bank 0(2004) the
most common partnership options used world-wide are classified as:
• a. Service Contract
• b. Management Contract/Lease
• c. Build Operate Transfer
• d. Concession

8. Types of Build Operate and Transfer Models:
• Build Own Operate (BOO):
• The government grants the right to finance, design, build, operate and maintain a project to a private entity,
which retains ownership of the project. The private entity is not required to transfer the facility back to the
government.
• Build Operate Transfer (BOT):
• The private business builds and operates the public facility for a significant time period. At the end of the time
period, the facility ownership transfers to the public.
•
• Build-Own-Operate-Transfer (BOOT):
• The government grants a franchise to a private partner to finance, design, build and operate a facility for a
specific period of time. Ownership of the facility is transferred back to the public sector at the end of that period.

9. Types of Build Operate and Transfer Models:
• Design-Build-Maintain (DBM):
• This model is similar to Design-Build except that the private sector also maintains the facility. The public sector retains
responsibility for operations.
• Build-Develop-Operate (BDO):
The private business buys the public facility, refurbishes it with its own resources, and then operates it through a government contract.
• Build-Own-Lease-Transfer (BOLT):
The government grants the right to finance and build a project which is then leased back to the government for an agreed term and fee.
The facility is operated by the government. At the end of the agreed tenure the project is transferred to the government.
• Develop Operate and Transfer (DOT):
DOT can be said to be a contractual arrangement whereby favourable conditions external to the new infrastructure project which is to
be built by a private developer are integrated into the arrangement by giving that entity the right to develop adjoining property, and
thus, enjoy some of the benefits created by the investment such as higher property or rent values.

10. Types of Build Operate and Transfer Models
• Design-Build-Operate (DBO):
• Under this model, the private sector design and builds a facility on the
turn-key basis. Once the facility is completed, the title for the new facility is
transferred to the public sector, while the private sector operates the
facility for a specified period. This model is also referred to as Build-
Transfer-Operate (BTO).
• Design-Build-Finance-Operate/Maintain (DBFO, DBFM or DBFO/M):
• Under this model, the private sector designs, builds, finances, operates
and/or maintains a new facility under a long-term lease. At the end of the
lease term, the facility is transferred to the public sector. In some countries,
DBFO/M covers both BOO and BOOT

11. Form of
Contract
Operation and
Maintenance
Ownership Investment Commercial
Risk
Duratio
n in
Years
Service
Contracts
Management
Support
Public and
Private
Public Public Public 1-2
Operation and
Management
Private Public Public Public 3-5
Delegated
Management
Contracts
Lease Private Public Public Semi-Private 8-15
Affermage
Private Public Public Semi-Private 8-15
Concession
Private Public
Public/
Private
Public and
Private
20-30
Construction
support
Contracts
BDO
Private Public Public Private 20-30
BOT, BOO
Private
Public/
Private
Private Private 20-30
Table 2: Different forms of Public-Private Partnerships
(Source: Thomsen, 2005)

12. (Source: Department of Economic Affairs, Ministry of Finance)
Preparation of Initial Screening Report
(ISR)
Approval of the ISR and the Project by
the Government/ Statutory Authority
Project development studies, including
demand assessment, environmental
assessment, cost estimates, risk
management mechanism and financial
structuring of the project
Developmental of contractual structure
and preparation of concession
agreement and bid documents
Bidding Process
Selection of Private Sector
Investor/Developer
Signing of Concession/Contract
Agreement
Monitoring Performance and Costs
Support for making infrastructure
projects commercially viable
Access to long-term debt finance
 Transaction Advisers.
 IIPDF for Project development
expenses
 Online Toolkit and Manual
 Viability Gap Funding Scheme
 Finance through IIFCL
Project Identification
 Expert Support to the PPP Cells
through PPP and MIS
consultants and legal advice
under ADB T.A
 Sector specific and need
Assessment Workshops
 Training of officers – short term
and long term courses.
 Exposure to best practices
 Pre bid Grading of Projects and
risk evaluation.
PPP PROJECTS - PROCESS MANAGEMENT

13. Financing of Infrastructure finance – Project Finance
Most of the infrastructure is
financed by project finance
Project finance is the financing
of a specific project by an
entity (SPV) that is created
with the sole purpose to
design, build, manage, that
specific infrastructure

14. Difference between project finance and
traditional finance
• In traditional finance only one
company typically carries out
multiple simultaneous initiatives
that get financed as a portfolio
of projects
• Project finance is the funding
(financing) of long-term
infrastructure, industrial
projects, and public services
using a non-recourse or limited
recourse financial structure. The
debt and equity used to finance
the project are paid back from
the cash flow generated by the
project.

15. Non recourse Loan
• Non-recourse finance is a type of commercial lending that entitles
the lender to repayment only from the profits of the project the loan is
funding and not from any other assets of the borrower. Such loans
are generally secured by collateral.
• A non-recourse loan, more broadly, is any consumer or commercial
debt that is secured only by collateral. In case of default, the lender
may not seize any assets of the borrower beyond the collateral. A
mortgage loan is typically a non-recourse loan.
• Non-recourse financing entitles the lender to repay only from the profits of the
project which the loan is funding.
• No other assets of the borrower can be seized to recoup the loan upon
default.
• Non-recourse financing typically requires substantial collateral and a higher
interest rate and is typically used in land development projects.

16. Recourse loan
• In project financing, the lenders have limited recourse. This means
that in the case of a default, the lenders have recourse to the
assets under the project, securing completion and using
performance guarantees under the project.
• A recourse loan favors the lender because it allows them to pursue
legal action even after the collateral (e.g., your home) has been
seized.
• Eg:
• Another common example of a recourse loan is your car loan. These types of loans are typically
recourse loans because car values are notorious for dropping as soon as you drive away from the
dealership. Let’s say you get a car loan for $20,000 to purchase a car. As you drive the car, the value
drops more and more. After a year of owning the car, you stop making payments, but you still owe
$16,400 on the loan. The lender seizes the car, but by now the car is only worth $14,000. Because the
loan is a recourse loan, the lender can sue you for the additional $2,400 to cover the debt owed.

18. What makes
infrastructure
suitable for
project
finance
•stable predictable, cash
inflows
•Long gestation periods
•Natural monopoly

20. Key parties to the project
• SPV : A Special Purpose Vehicle (SPV) is an entity created only
for the purpose of execution of the project. This means that
the Special Purpose Vehicle (SPV) is different from the private
government body, which may be sponsoring it for legal
• Project Sponsors: They are sponsors are responsible for
converting a concept into a project and have a role in setting
Identifying and recruiting project talent
• Project lenders
• Government
• EPC contractors
• O & M contractors

21. SPV – Special Purpose Vehicle
• Typically SPV is created for the sole purpose of implementing the
project. SPV is a separate legal entity created by the sponsor
• The SPV would have Shareholders agreement with the project
sponsors
Eg: Coastal Gujrat Power limited a subsidiary of Tata Power is the SPV created for
implementing 400MW ultra mega power project in Mundra Gujrat.
• The sponsors ie Tata Power have a shareholders agreement SPV
• The government enters into a concessional contract with the SPV for
the duration of the concessional period
• The SPV will enter into EPC contract with the specialised construction
companies and transfer the construction risk to the EPC companies.

23. • Delhi international Airport limited(DIAL) is the SPV for delhi airport
and has a concession agreement for 30 yrs to operate the Delhi
airport by AAI.

24. Infrastructure financing challenges
• Fundamental to the question of project financing is the correlation
between perceived credit risk (resulting from various technical,
commercial, and other risks associated with the project) and the cost
of finance
• Infrastructure project financing in general, whether from banks or
bond markets, faces a number of challenges including
• (i) long-term debt maturities to match project cash flows,
• (ii) limits to the availability of local currency debt financing to match local
currency revenue steams ( Exposed to transaction and translation exposure)
• (iii) limited available equity and resulting high degree of leverage,
• (iv) no security/guarantee except for project assets available (“nonrecourse
financing”).

25. How to deal with the challenges
As a result, project finance is a specialized activity and, depending on prevailing
market conditions, may or may not be available at any time.
• To make financing possible or to secure better borrowing rates, the operator may
seek credit enhancement through insurance or guarantees.
• These are (partial) credit guarantees (e.g., from the government itself or from a
development finance institution)
• or political risk guarantees (from insurers or development finance institution)
against the government or regulator not adhering to agreements (e.g., take-or-pay
off-take agreement, concession agreement, etc.).
• To determine the amount of debt finance the project can sustain, lenders perform
their own calculations related to project performance and cash flow. These include
debt service cover ratios, loan life coverage ratios, and project life coverage ratios.
Project financing requires a very thorough appraisal process because of the sole
reliance on project cash flows. Lenders will undertake due diligence exercises to get
comfort that the project assumptions and risks are reasonable.

26. The Different Parties Involved In a Special Purpose
Structure?
• Equity Investors: For the Special Purpose Vehicle (SPV) to come into
existence, it has to receive some capital.
• This capital is provided by the equity investors.
• Generally, equity investors include private parties and the government.
• In the case of public-private partnerships, it could be both. This is the
primary party that will gain or lose depending upon the performance of the
contract. Since they own the equity of the SPV, they control its actions and
who it gets into a contract with.
• The fact that the investors have to put in money in the Special Purpose
Vehicle (SPV) does not make the Special Purpose Vehicle (SPV) structure
redundant. The benefit of using the structure is that the equity investors
have limited exposure to the downside. The maximum loss that they could
face is limited to the amount they apportioned as an equity investment to
the Special Purpose Vehicle (SPV).

27. Debt Investors:
• Infrastructure projects usually require a huge amount of money.
• Also, since the cash flows of the project are somewhat stable, and the
returns provided are low, equity investors use a lot of leverage in
order to magnify their returns.
• It is common for infrastructure projects to use a leverage ratio of 10
to 1
• Debt investors include banks, investment banks, private equity firms,
and even pension funds. Infrastructure companies have been
providing a wide variety of financial instruments that the debt
investors are using to invest their money in these Special Purpose
Vehicles (SPV).

28. External Agencies:
• Since Special Purpose Vehicles (SPV) use a lot of borrowed money,
they frequently require the help of third-party companies.
• The Special Purpose Vehicles (SPV) have to engage rating agencies to
rate their debt instruments. This is important since many mutual
funds and pension funds cannot invest their money in assets that are
not above a certain investment grade.
• Also, the Special Purpose Vehicles (SPV) have to engage financial
institutions like banks or insurance companies that provide bank
guarantees to investors.

29. • Construction Contractor: Finally, in most cases, the Special Purpose
Vehicles (SPV) appoints its parent company as the chief construction
contractor.
• Using this mechanism, the equity investors are able to plow back most of
the funds that they had invested in as equity capital. However, they are
only able to do so once they execute the projects. Debt covenants usually
do not allow the SPV to give out money to the contractor until certain
milestones have been met. However, using the SPV structure, the company
is able to execute the projects without taking any undue risks.
• Maintenance Contractor: Lastly, once the project is constructed, it is
usually given out to a maintenance contractor.
• This contractor is generally another SPV which has the same set of
stakeholders and follows more or less the same process.
• Even if the same parent company plans to maintain the project, they
generally create a different SPV. In this case, the SPV is done to safeguard
the revenues. The idea is to protect these risk-free revenues by segregating
them from other risky investments which the company may be
undertaking.

30. Escrow account
• An escrow account is a third-party account where funds are kept before
they are transferred to the ultimate party. It provides security against
scams and frauds, especially with high asset value and dispute-prone
sectors
• Since the lenders have to depend only on revenues as it is nonrecourse
finance, they insist on all the revenues to go to an escrow account on
which the lenders would first charge
• In addition the lenders want the following to be defined by contract
• Sources of revenue
• Indexation of user fees to inflation
• Discounts and penalties related to performance
• Termination payments

31. Types of infrastructure projects
• Green field projects: projects invest in infrastructure from the beginning of
its development. The project together is started by the SPV and bears the
risks accordingly. They are characterized by high-risk high return profile and
the average IRR is 15%. – BOT projects
• Brown Field Projects: Projects that invest in infrastructure that are already
there and they have passed the construction phase. They bear the risks
linked to the operational phase. As they do not bear the risks associated
with the construction and the risks are lower when compared to greenfield
projects. On average the average IIR is 12%.
• eg: Service & Management contracts

32. Contents of a Basic Concession Agreement
• The parties to the agreement; • Interpretation: Sets forth the definitions of important terms and providing guidance on the interpretation of the contract’s provisions; •
The scope, territorial jurisdiction, and duration of the agreement; • The objective of the contract; • Circumstances of commencement, completion, modification, and
termination of contract; • The rights and obligations of the contractor; • The rights and obligations of the government; • The requirement for performance bonds to
provide security for government if the construction and/or the service delivery falls below standards; • Insurance requirements to provide security for the insurable
matters; • Government warranties; • Private sector warranties; • Consequences to a change in law; • Service quality, and performance and maintenance targets and
schedules; • The identification of regulatory authorities, if any, and the extent of their roles and authority; • The responsibilities of the contractor and the government with
regard to capital expenditures; • The form of remuneration of the contractor and how it will be covered, whether from fixed fee, fixed fee plus incentives, or another
arrangement; • How key risks will be allocated and managed; • The contractor’s rights and responsibilities with regard to passing through or entering public or private
property; • Reporting requirements; • Procedures for measuring, monitoring, and enforcing performance; • Procedures for coordinating investment planning; •
Responsibility for environmental liabilities; • Procedures for resolving disputes; • Delay provisions describing what is and is not an excuse for a delay in construction or
operations; • Force majeure conditions and reactions; Procedures to be followed when either party to the PPP contract wishes to change any material portion (variation)
of the contract; • Indemnification circumstances; • The rights of each party to any intellectual property brought to the project or created during the project, including the
steps to be taken to protect the intellectual property of third parties, such as information technology software manufacturers; • Conflict of interests and dispute
resolution; • Description of the conditions under which either party may terminate the contract, the processes to be undertaken in that regard, and the consequences to
each party of a termination; • The circumstances that may permit either the government or any financial institution to “step in” to the contract to protect its rights under
the PPP contract; • Consequences of a change in the ownership or key personnel of the private partner; • Mechanisms whereby the parties to the PPP contract will
interact with each other going forward; • Requirement that each party comply with all laws pertaining to the project, including obtaining environmental, zoning, planning,
and other permits; • Conditions by which public sector employees are employed by the private sector contractor, including any restrictions on terminations or
redundancies for operational reasons; and • Conditions precedent: Describes any conditions precedent to be fulfilled by either party before the contract takes effect.

33. Sources of Finance for PPP projects
• Equity: Equity is subscribed by the parent companies sponsoring the SPV and by its shareholders, who view
the project as an attractive investment opportunity.
• Contractors for construction, maintenance, operations and supply of equipment are also normally persuaded to
participate in equity.
• Government agencies such as the National Highway Authority of India (NHAI) and state government
undertakings may also contribute to equity to a limited extent in some projects.
• Currently, foreign firms, particularly those from Malaysia, Japan and Indonesia, are investing in BOT
projects in India.ty. Equity holders get their returns only after all other project obligations are met. Thus the
equity holders may gain a profit or lose their expected return, depending on the success or failure of the project.
Equity holders carry the highest risk, and it is natural that they expect high returns (about 20%).
•

34. Sources of Finance for PPP projects
• Debt : Debt capital is necessary for most PPP projects as the concessionaire may not be able to provide the entire investment in the
form of equity. The sources of debt are the commercial banks, financial institutions and multi-lateral organisations. Commercial banks
in the past have been providing debt instruments with short tenure of less than seven years, to be in tune with the normal deposit
tenures. Financial institutions are willing to advance funds for longer duration. Multi-lateral agencies, such as the World Bank, the
International Finance Corporation and the Asian Development Bank, provide funds for road development on long term (20 to 30 years)
basis, but they insist on government guarantees. A promising source of debt funds is the insurance sector, whose appetite for long-term
assets matches with the needs of infrastructure projects for long-term debt.
• Debt from these lenders is termed as "Senior Debt" to denote that, in the case of project default, the lenders of senior debt will have
the first right to the cash flow and assets of the project, over the providers of equity and mezzanine capital. Debt can also be mobilized
by issue of bonds, including deep discount bonds, with duration to match the debt repayment period for the project. Tax-exempt
infrastructure bonds are permitted by government for this purpose.
• A recent innovation is the 'take-out' financing scheme pioneered by Infrastructure Development Finance Company (IDFC) with
a view to encourage bank lending. Under this plan, commercial banks could lend funds to a PPP project in the initial period on a
short/medium tenure, and IDFC would 'take-out' these assets from the banks at the end of the agreed duration. This route has been
followed in the Delhi-Noida Toll Bridge project. The 'take-out' scheme serves to assure 'comfort' to the banks in their lending to the
infrastructure projects.

36. Sources of Finance for PPP projects
• Mezzanine finance
Mezzanine finance is an investment with some qualities of debt and equity, and so it carries a risk profile
intermediate between debt and equity. This may take the form of subordinated debt or preference shares with
regular interest. Mezzanine capital ranks below the senior debt, and carries a higher rate of interest than senior
debt. It is normal to persuade the contractors/suppliers to subscribe to mezzanine capital. The concessionaire
may be able to secure a larger senior debt on favourable terms in view of the mobilized mezzanine capital.
• When the financial viability of an otherwise desirable project is weak, the government
• may assist the SPV by providing a subordinated debt and/or a guarantee to award a bridge loan for debt
servicing in case of a shortfall in revenue in the early part of the operation period.

37. The Viability Gap funding (VGF)
• The Viability Gap funding (VGF) Scheme of the GOI provides financial
support in the form of grants to infrastructure projects undertaken on PPP
mode which is generally 20 per cent of the project cost.
• These grants are either one time or deferred basis, and are strictly
restricted for the purpose of making the projects commercially viable.
• Government of India has also requested the World Bank to help bridge the
critical shortfall in infrastructure financing. Historically the World Bank has
a long association with India in building infrastructure - be it the railways,
national highways, state highways, or water systems - and has developed
considerable expertise in these areas. World Bank support helps in
increasing the availability of long-term finance for infrastructure PPP
projects in India and also help the Indian Infrastructure Finance
Corporation Limited (IIFCL) to stimulate the development of a long-term
local currency debt financing market for infrastructure in India.

38. Sources of Finance for PPP projects
• Mezzanine finance
• Mezzanine finance is an investment with some qualities of debt and equity, and so it carries a risk profile
intermediate between debt and equity. This may take the form of subordinated debt or preference shares with regular
interest. Mezzanine capital ranks below the senior debt, and carries a higher rate of interest than senior debt. It is
normal to persuade the contractors/suppliers to subscribe to mezzanine capital. The concessionaire may be able to
secure a larger senior debt on favourable terms in view of the mobilized mezzanine capital.
• When the financial viability of an otherwise desirable project is weak, the government may assist the SPV by
providing a subordinated debt and/or a guarantee to award a bridge loan for debt servicing in case of a shortfall in
revenue in the early part of the operation period.
• Securitisation: If funds are raised in the bond market by process through which the issuer creates a financial
instrument by combining its other financial assets and then marketing repackaged instruments to investors. The process
can encompass any type of financial asset and promotes liquidity to the firm.PPP projects are quite suitable for
securiisation because of their low risk.

39. Sources of Finance for PPP projects
• Loan Syndication: It is a loan offered by a group of lenders called as a syndicate who work together to
provide funds for a single project. The loan may involve fixed amounts, a credit line or a combination of two.
Typically there is a lead bank or underwriter of the loan, known as the “arranger” or “lead lender”. The lead
lender may put a proportionally bigger share and performs administrative duties among other syndicate
members.
• Receivable Financing: This is based on lending against the established cash flow of a business and involves
transferring a cash flow stream to an SPV similar to a project company. This cash flow may be derived from
the general business or specific contracts which give rise to the cash flow. The SPV then borrows against this
cash flow, without any significant recourse or guarantee to the owners of the original business, who are able
to raise funding off –balance sheet, as well as reduce the business risks.

43. Securitisation of Loan
• Securitization is the process of
transformation of non-tradable
assets into tradable securities.
• It is a structured finance process
that distributes risk by
aggregating debt instruments in
a pool and issues new securities
backed by the pool.

44. Asset Monetisation
• Asset monetization is the process of creating new sources of revenue for the
government and its entities by unlocking the economic value of unutilized or
underutilized public assets.
• For example, instead of just selling the roads or highways, the Government can
make an agreement with the private entities for a certain period in which the
rights of generating income through these roads or highways will remain with the
private entity.
• In August 2021, GOI announced an asset monetisation plan wherein existing
public assets worth Rs. 6 trillion would be monetised by leasing them out to
private operators for fixed terms, and the proceeds would be used for new
infrastructure investment.
• A public asset can be any property owned by a public body, roads, airports,
railways, stations, pipelines, mobile towers, transmission lines, etc., or even land
that remains unutilized.
• To monetize something means to ‘express it or convert it into the form of
currency’. Basically, monetizing is ‘to utilize (something of value) as a source of
profit,’ or ‘to convert an asset into money

45. Eg: Youtube Monitisation
• YouTube monetization is the ability to make money from your videos.
To enable monetization on YouTube, you need to meet certain
requirements and join the YouTube Partner Program (YPP). According
to YouTube, to qualify for monetization, you must have: 4,000 watch
hours over the last 12 months

46. Asset Monetisation
• As a concept, asset monetisation implies offering public infrastructure
to the institutional investors or private sector through structured
mechanisms.
• Monetisation is different from ‘privatisation’, in fact, it signifies
‘structured partnerships’ with the private sector under certain
contractual frameworks.
• Asset monetisation has two important motives:
• Firstly, it unlocks value from the public investment in infrastructure,
• secondly, it utilises productivity in the private sector. Asset monetisation aims
sector investment for new infrastructure creation.

47. Asset Monetisation
• "Asset monetisation does not involve the selling of land, but it is about
monetising brownfield assets", said India's Finance Minister Nirmala
Sitharaman.
• In India, the idea of asset monetisation was first suggested by a committee
led by economist Vijay Kelkar in 2012 on the roadmap for fiscal
consolidation.
•
• The committee had recommended that the government should start
monetisation to raise resources for further development and financing
infrastructure needs.

48. National Monetisation Pipeline
• The government of India announced the National Monetisation Pipeline (NMP)
worth Rs 6 trillion on August 23 in 2021. This scheme aims to serve as a roadmap
for the asset monetisation of several brownfield infrastructure assets across
sectors including roads, railways, aviation, power, oil and gas, and warehousing.
• NMP is a central portal that could act as a land bank housing information about
all assets that have been lined up for utilisation by strategic investors or private
sector companies. It will also assess the potential value of unused and
underutilised government assets.
• The NMP targets to raise Rs 6 trillion through asset monetisation of the central
government, over a four-year period, from FY22 to FY25. However, the ownership
of the assets will be retained by the Centre. NMP focuses on brownfield assets in
which investments have already been made but are underutilised.
• https://www.niti.gov.in/verticals/ppp

49. Different committees in Infrastructure
• The Cabinet Committee on Infrastructure was formed in 2009 under the then Prime
Minister. It was a replacement of Committee on Infrastructure which was formed back in
2004. CCI was as a standing committee which was formed with the primary goal to fast track
the implementation of key infrastructure projects and help in conflict resolution if any arises.
Objective and Role of Cabinet Committee on Infrastructure:
• Focused and speedy decisions in matters related to key infrastructure projects.
• Taking decisions to remove blockages in the implementation of projects like airports,
highways, irrigation, power generation and likewise.
• It was decided that all the projects which had a cost of at least Rs 3 million will be considered
and taken care of by the Cabinet committee on infrastructure.
• It is responsible for deciding the fiscals, legal, institutional measures which require
modification for better implementation of the policy
• It sets the performance targets for all the infrastructure projects under it.
• It has the job to review the progress and also considers the cases of cost inflation and the
possible solution of them.
• Granting permits so that private sector companies can also invest in various infrastructure
projects.

50. Cabinet Committee on Infrastructure
Sectors which come under :
• National Highways
• Information Technology
• Irrigation
• Facilities for urban slums
• Seaports
• Inland waterways
• Airports
• Railways
• Power generation plants
• Housing in rural as well as urban areas

51. Appointments Committee of the
Cabinet (ACC)
• The Appointments Committee of the Cabinet (ACC) decides
appointments to several top posts under the Government of
India.[1]
• The committee is composed of the Prime Minister of India (who
is the Chairman) and the Minister of Home Affairs.[2] Originally
the Minister-in-charge of the concerned Ministry was also part
of the committee.