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.


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….

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