An Empirical Study of Environmental Constraints Faced by Public Private Partnership (PPP) in India with Special Reference to Uttar Pradesh

Private sector participation through Public Private Partnerships is increasingly being used as a means for delivering physical infrastructure amidst increasingly constrained public budgets and inadequate service delivery. The Government of India, which is currently grappling with a crippling infrastructure deficit, has pursued a number of strategies to encourage Public Private Partnerships in the infrastructure. However, these efforts have met with mixed success. Theresearcher has delved into the perceptual mapping of top management people of public and private sector as regards to the constraints coming across the PPP development and implementation. The environmental constraints pertaining to political, legal, financial, social and policy framework have been questioned in 5 points likert scale. Internal consistency of the questionnaire has been found statistically reliable. The core components of environmental constraints which have been identified are effect of change of ruling party, biased government procurement, non preferential political move towards corruption, restriction on participation of foreign investors, inadequate provision in law for environmental protection, under developed pension, insurance and equity markets, lack of clear authority and responsibility in PPP policy, transparency of tendering process and lack of awareness programs regarding importance of PPP projects and importance of user pays principle. It is anticipated that the identification of the relative importance of the constraints as perceived by stakeholders, will help the Uttar Pradesh government in developing measures and strategies to mitigate the constraints thus facilitating the speedy implementation and deal closure of Public Private Partnership initiatives with the ensuing benefits