CA Foundation · Business Economics · Indian Economy
Which statement about a Public-Private Partnership (PPP) in Indian infrastructure is most accurate?
A PPP is a contractual collaboration in which the private sector contributes investment, technology and operating efficiency to a public infrastructure project while risks and returns are shared with the government, for example roads built on a build-operate-transfer basis.
- AIt involves collaboration where the private sector brings investment and operational efficiency to a public project under a contractCorrect
- BIt means the government hands over full ownership of the asset permanently to a private firm without any contract
- CIt is a method of financing only through foreign aid grants
- DIt is an arrangement where only public sector banks may build infrastructure
Explanation
PPP projects, such as roads on build-operate-transfer basis, are contractual arrangements sharing risks and responsibilities between government and private firms. They are not permanent privatisation, not limited to foreign aid, and not restricted to public sector banks.
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