The PPP Model

Have we failed to inspire?

Most of the financial institutions raise money through debts or equities. Sometimes bonds are issued from the governments to raise coiffures – be it sovereign or treasury. Unfortunately, when a particular government buys treasury bills of another country, the buyer government has an edge while bailing the others. This allows only major players in the world.

There has been a talk of raising a required amount of money (nearly 12k Crores INR) through bonds. Given some facts as the repayment options do not request a stakeholder pattern, I guess this is a better mean than most of the debt instruments used to raise money. But can we take a leaf out of the book of PPP model that can be used to raise money without lending a stake?

Originally, PPP pattern means public private partnership, where currently private players are lending a small amount to the public system for a joint venture or a project. Currently, for big projects, only 5% is filled atmost by private players. Now, can we have something along these guidelines for raising the capital and return as well for the PPP Model.

PPP

Till now, it has been a wait and watch system or a “cautiously optimistic system” on the PPP Model. Firmly speaking, apart from the usual tasks on risk analysis, project management, and revenue pattern sharing; there can to be a structured model on the PPP, such that lock-in period gets dissolved if shareholding pattern in taken out. Either you receive the returns or become a share-holder, depending on a case-by-case basis. So, a good way is to start is to pluck the lower-hanging fruits, or things with immediate returns in the PPP Models. Sincerely speaking, if the system allows a 7% CAGR for 2 years, many players would be interested. Always, and always we have to remember that negotiations should help both of the parties, and a win-win effort to come true. There is no place for doubts, with lots of if-and-but in the system which can raise money alternately by issuing government bonds through FIIs, DIIs, unforeseen revenues, and the public system as a whole. Can we raise money through the commoners where everyone is a part of the system, and is wholly responsible for it? Let us take an example of a heritage park- people in the vicinity pay for publically issued government bonds, who are responsible for a small stake and as well as well as its cleanliness? Or a development of an airport near Navi Mumbai maintained and established by a group of private players?

I guess that would be a moral way to allow people come closer to the government as well. Not only MyGov.in….

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