Revisit PPPs for reviving investments

A robust revival of private investment is a major challenge for the Indian economy. Getting the investment rate to being over 36 per cent again is imperative to get sustained growth of over 8 per cent. One option for attaining this goal is to revisit PPPs (public private partnerships) and to try and use them as a major instrument for reviving investment and meeting critical infrastructure needs to take India on to a higher growth trajectory. For the development agency, there may be a net revenue outflow for some years to meet the gap between the payments to the builder and the lower revenue from the hotelier till such time as the tourist inflows rise sufficiently.