Public-Private Partnership (PPP) Model in Rajasthan

5.1 PPP Concept and Rationale

Public-Private Partnership (PPP) is a contractual arrangement under which a private entity finances, builds, operates, and often transfers back an infrastructure facility, while the public entity retains ownership or strategic oversight. The rationale is fiscal space limitation — state governments cannot fully fund all infrastructure from the budget. PPP channels private capital and management efficiency into public infrastructure.

PPP models used in Rajasthan:

Model	Full Form	Description
BOT (Toll)	Build-Operate-Transfer	Private party builds, operates, collects tolls, then transfers
BOT (Annuity)	Build-Operate-Transfer (Annuity)	Government pays fixed annuity; no toll risk on private party
HAM	Hybrid Annuity Model	40% upfront by government, 60% private; annuity paid during ops
DBFOT	Design-Build-Finance-Operate-Transfer	Private designs + finances + builds + operates
OMT	Operate-Maintain-Transfer	Existing asset handed to private for O&M, then transferred back
PPP-SPV	Special Purpose Vehicle	JV between govt and private for a specific project

5.2 Rajasthan's PPP Portfolio

Rajasthan PPP status as of 2024-25:

• Completed projects: 198 projects, total investment ₹19,611 crore
• Under implementation: 27 projects, total investment ₹4,080 crore
• Pipeline (DPR stage/approved): 68 projects, total investment ₹71,705 crore
• Cumulative PPP pipeline value: ~₹95,396 crore

Source: Rajasthan Economic Review 2025-26, Chapter 2

Sectoral distribution of PPP projects in Rajasthan:

Sector	Notable Projects	PPP Mode
Roads/Highways	Delhi-Mumbai Expressway (state section), NH-48 4-laning	BOT Toll / HAM
Airports	Jaipur T2 (Adani), Udaipur expansion	DBFOT (Adani)
Health	PPP district hospitals (30-bed model), dialysis centres	Revenue sharing
Urban Water Supply	Ramchandrapura-Jaipur water supply, Ajmer water	BOT + O&M
Bus Terminals	Swami Vivekanand ISBT Jaipur	DBFOT
Tourism	Heritage hotels, ropeway projects	Revenue sharing PPP

Source: Rajasthan PPP Cell, Finance Department, 2024

5.3 PPP in Health: A Rajasthan Innovation

Rajasthan has pioneered health sector PPP at scale. The model works as follows:

• Government provides land, building, and patient referrals
• Private partner provides specialized services (radiology, dialysis, cardiac)
• Services offered at government-regulated rates to Chiranjeevi scheme beneficiaries

Key health PPP programs:

• Dialysis PPP: 178 dialysis centres across all 50 districts (NephroPlus and others); free 3-sessions/week to BPL/Chiranjeevi beneficiaries; over 70,000 patients served per month
• 108 Emergency Ambulance Services: 935 ambulances operated by Ziqitza Healthcare under PPP; free service covering all districts
• Rajasthan Arogya scheme: CT, MRI, blood tests at subsidized rates to Chiranjeevi beneficiaries through private operators in government premises

5.4 PPP Governance Framework

The Rajasthan Infrastructure Development Enabling Act (RIDEA) 2024 provides enabling legislation for PPP projects. Key provisions:

• Empowered PPP Committee headed by Chief Secretary for projects above ₹500 crore
• Viability Gap Funding (VGF): State can provide up to 20% of project cost as VGF for high-social-return projects
• Single-window clearance: 60-day timeline for PPP projects
• Independent regulator concept for concession agreements

India-level context: DPIIT's National Monetisation Pipeline (NMP) 2021-25 identifies brownfield assets for monetisation through OM&T concessions. Rajasthan participates through NHAI toll roads, NWR assets, and AAI airports.

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