Delhi Eyes PPP Model For Big-Ticket Infra Push: Flyovers, Hospitals, Underpasses And More In Pipeline

In a major infrastructure development push, the Delhi government is planning to implement high-cost projects such as flyovers, bridges, hospitals, schools, and office complexes through the Public-Private Partnership (PPP) model, Indian Express reported.

The initiative aims to speed up execution timelines, reduce funding delays, and curb cost overruns.

The move was discussed in a recent meeting chaired by Public Works Department (PWD) Minister Parvesh Sahib Singh.

According to the officials cited in the IE report, the department has been directed to draft a Cabinet proposal in this regard.

A senior PWD official explained that many large infrastructure projects currently could not be executed due to limited availability of public funds.

To address this, the Delhi government intends to adopt the PPP model, where private firms are brought in to build and maintain the projects.

“Under this model, the government hires a private company and enters into a contract with it. It hands over land parcels to the company, which implements the projects and maintains it. The company generates revenue through payment of user charges by commercialising spaces available, like through advertisements, by setting up petrol pumps, collecting toll tax, and leasing out land to shops,” said the official.

Projects exceeding Rs 500 crore, such as major flyovers, hospitals, underpasses, and institutional complexes, are likely to be developed under this framework.

However, officials added that even projects costing above Rs 100 crore may also be considered.

The model follows examples set by the National Highways Authority of India, which has successfully executed expressway projects through PPPs.

A similar structure is being explored for Delhi's infrastructure needs, with the government likely to sign contracts for up to 30 years with private partners.

The proposal will involve appointing a transaction advisor to finalise legal, technical, and financial details.

Officials cited the delayed construction of 11 hospitals, initiated in 2020 to 21, which now require Rs 9,000–10,000 crore and have seen cost escalation of nearly 50 per cent.

Additionally, PPP models are already in use for Delhi Transport Corporation’s smart bus stop water ATMs and small sewage treatment units, both offering private players advertising rights in return.

Also Read: Show Me Satellite Imagery Of Any Indian Damage: NSA Doval Tears Into Foreign Press For Spreading Pakistan's Propaganda During Op Sindoor