Uploaded on Jul 12, 2022
Ziqitza elaborates that the government of India recognizes several types of PPPs such as, Performance based management/maintenance contracts, Modified design-build (turnkey) contracts, and User-fee based BOT model. The country today stands witness to hundreds of projects based on public private partnership models in various stages of implementation.
Ziqitza Healthcare ltd - Why public private partnership is blooming in India
Ziqitza Healthcare ltd - Why public private
partnership is blooming in India
The public private partnership model gained popularity in the
late 1980s, as an alternative tool to address the infrastructural
inadequacies and to assist the governments in overcoming the
financial investment constraints. The public private partnership
model or framework gained prominence or became popular in
both developing and developed nations.
The Government of India defines the public–private partnership
or PPP or 3P as a commercial legal relationship.
Ziqitza Healthcare ltd, a prominent healthcare and emergency
service providing organisation explains that public private
partnership is an arrangement between a government, or
statutory body or government owned body on one hand, and a
private sector company or entity or body on the other hand, for
provision of public services.
Ziqitza elaborates that the government of India recognizes
several types of PPPs such as, Performance based
management/maintenance contracts, Modified design-build
(turnkey) contracts, and User-fee based BOT model. The
country today stands witness to hundreds of projects based on
public private partnership models in various stages of
implementation.
The Government of India is committed to improving the level
and the quality of economic and social infrastructure services
across the country. In pursuance of this goal,
Ziqitza Healthcare explains that the government envisages a
substantive role for Public Private Partnership (PPPs) as a
means for harnessing private sector investment and
operational efficiencies in the provision of public assets and
services.
In the last one and half decade, India has witnessed exponential
growth in PPPs, and has emerged as a leading PPP market across
the globe. The credit for the framework's adoption goes to the
central as well as state governments for introducing several
policies and institutional initiatives targeted at adoption of the
PPP framework and to leverage its benefits. Ziqitza Rajasthan,
points out that the central government has categorically set up
a Public Private Partnership Appraisal Committee to manage
and streamline appraisal and approval of projects.
ZHL Rajasthan states that the central government has set up
transparent and competitive bidding processes to ease the
process of PPP within the country. The government has also
provided for cross sectoral support to the PPPs through
Viability gap funding, user charge reforms, project development
funds, as well as institutional and individual capacity building.
Ziqitza Limited correctly points out that India’s healthcare
system faces multiple challenges in terms of improving the
quality of service and also ensuring equitable access to
healthcare for all. India’s healthcare needs to strengthen
itself to be able to tackle future epidemics and pandemics,
and also be able to manage the disease incidence profiles.
And this can only be addressed with concerted effort of
both public and private sectors. Ziqitza Limited Rajasthan,
points out that India has been suffering with healthcare
inadequacies and this grim reality became more evident
during the second wave of the COVID-19 pandemic. Unlike
the first wave where the country was caught off guard, the
second wave proved lethal due to lack of India’s
preparedness, lack of adequate vaccines, oxygen, beds,
medicines etc.
Ziqitza Health care limited points out that these glaring gaps in terms
of lack of access to healthcare infrastructure, accessibility, availability
of medicines, inadequate health facilities etc, can be addressed
through an effective and efficient public private partnership. Few
benefits of PPP model in terms of strengthening the Indian
healthcare system:
Expertise: The experience and management expertise
synonyms with the private sector can assist in revamping
public medical facilities.
Mutual Financial Benefits: The private sector can leverage
its large funds to build healthcare infrastructure. Similarly, the
public sector can bring in the required subsidies and
accessibility.
Increased Availability: The public private partnership model
will assist the government with required resources to make
healthcare available for the larger masses.
Affordable Healthcare: PPPs high-volume, low margin
strategy can help attain universal healthcare for all.
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