Public Private Partnership in Generation of Electricity Model Power Purchase Agreement (DBFOT)

Abstract

There is a broad consensus that a sustained growth rate of about 8 per cent per annum is necessary for India to make progress in eliminating poverty and achieving a quantum jump in the quality of life of its citizens. The creation of world class infrastructure is key to achieving such a growth rate. However, the investment required for overcoming the existing deficit is so large that it cannot possibly be met by relying on the public sector alone. Greater reliance would, therefore, have to be placed on private participation. Accordingly, the Twelfth Plan (2012-17) has projected that out of the total investment of Rs 55.7 lakh crore in infrastructure, nearly half would have to come from private participation.