This document discusses public-private partnerships (PPPs) and foreign direct investment (FDI). It defines PPPs as cooperative arrangements between public and private enterprises to develop infrastructure projects through contracts that share risks, costs, and resources. It notes benefits of PPPs like reducing government budgets and increasing value. It then discusses characteristics of PPPs like long-term contracts and community development. The document also defines FDI and lists factors that determine FDI in India like stable policies and infrastructure. It discusses advantages and disadvantages of FDI for both host and home countries.

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PUBLIC PRIVATE
PARTICIPATION
PRESENTED BY
SIMRAN KAUR

2.  According to Van Ham and Koppenjan,”PPP are
cooperation of some sort of durable activity between
public and private actors in which they jointly
develop products and services and share risks, costs
and resources which are connected with these
products.”
 Cooperative institutional arrangements between
public and private enterprises which has gained
wide interest around the world
 It is a way to handle infrastructure projects
 It reduces pressure on government budgets
 It increases value for money in infrastructure
INTRODUCTION TO PPP

3.  PPP PROJECT: A project based on a contract or
concession agreement, between a government
or statutory entity on one side and a private
sector company on other side, for delivering an
infrastructure service on payment of user
charges
 PPP APPRAISAL COMMITTEE (PPPAC):
Includes Secretary of Planning Commission,
Department of expenditure, Department of
legal affairs and Department sponsoring the
project
TERMS IN PPP

4.  Cooperative and contractual relationship
 Shared responsibilities
 Procurement
 Risk transfer
 Flexible ownership
CHARACTERISTICS OF PPP

5.  Institutional cooperation
 Long-term infrastructure contracts
 Community development
 Urbanization
 Economic development
MAJOR ARRANGEMENTS
BETWEEN PUBLIC & PRIVATE
PARTICIPATION

6.  FDI refers to the net inflows of investments to
acquire a lasting management interest (10% or
more of voting stock) in an enterprise operating
in an economy other than that of investors
 Major investors include Individuals, Group,
Private and Public entity
 FDI = Equity capital + Reinvestment of earnings +
Short-term capital + Long-term capital
FOREIGN DIRECT INVESTMENT
(FDI)

7.  Sustaining a high level of investment
 Technological gap
 Exploitation of natural resources
 Understanding initial risk
 Development of basic infrastructure
 Improvement in Balance of Payments position
 Foreign firm’s helps in increasing the
competition
ARGUMENTS IN FAVOR OF
FDI

8.  Stable policies
 Economic factors
 Cheap and skilled labour
 Basic infrastructure
 Unexplored markets
 Availability of natural resources
DETERMINANTS OF FDI IN
INDIA

9.  Availability of scarce factors of production
 Improves Balance of Payments
 Building of economic and social infrastructure
 Fostering economic linkages
 Strengthening of the government budget
ADVANTAGES OF FDI TO
HOST COUNTRY

10.  Balance of Payments depends on improvement
of technology
 Employment of expatriates
 Unhealthy competition
 Cultural and political issues
DISADVANTAGES OF
FDI TO HOST COUNTRY

11.  Improves availability of raw material
 Improves Balance of Payments of country
 Creates more employment
 Creates more revenue
 Builds political relations
 Gets better investment opportunity
ADVANTAGES OF FDI
TO HOME COUNTRY

12.  Too much exploitation of factors of production
 Conflict with government of host country
DISADVANTAGES OF
FDI TO HOME COUNTRY

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