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UNIT 4: PUBLIC PRIVATE PARTNERSHIP (PPP) FOR FACILITATING

ENTREPRENEURSHIP
Structure

4.1 Introduction
4.2 Objectives
4.3 Public Private Partnership Approach
4.4 PPP- meaning: Defining Public Private Partnership
4.5 Significance of Public Private Partnership
4.6 Advantage Public private Partnership
4.7 Types of PPP
4.8 PPs for the promotion of Entrepreneurship in Rural Areas
4.9 PPPs in India
4.10 Case Study
4.11 Summing Up
4.12 Glossary
4.13 Answers to Check Your Progress Exercise
4.14 References and Suggested readings
4.15 Questions for reflection and Practice
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4.1 INTRODUCTION
An increasing number of governments are turning to the private sector to provide services
hitherto delivered by the public sector. The motives for pursuing public private partnerships
vary from fiscal opportunism, simply seeking to replace public finance with private finance, to
genuine desire to seek lower costs both for taxpayers and consumers or improved services.

There is no single accepted international definition of what a PPP is. In many countries the
core of PPP programmes or projects that are for services traditionally provided by the public
sector, combine investment and service provision, expect significant risks being borne by the
private sector and also see a major role for the public sector in either purchasing services or
bearing substantial risks under the project. PPPs are therefore more than service contracts
although some would include these in their definition of PPPs. As students of „Gender and
Development‟, it would be of interest to you to have a general idea of the concept of PPP and
its importance in entrepreneurship.
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4.2 OBJECTIVES
After studying this Unit, you would be able to
 describe the significance and need for PPP for promotion of entrepreneurship
 explain the meaning and types of PPP
 assess the governmental and non – governmental action in promoting PPP
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4.3 A PUBLIC PRIVATE PARTNERSHIP APPROACH
A Public Private Partnership Approach is a good way for strengthening a community‟s stake in
projects. A public private partnership is typically a partnership between the public and private
sector for the purpose of delivering a project or service traditionally provided by the public
sector. It is a different method of procuring public service and infrastructure by combining the
best of the public and private sectors with an emphasis on value for money and delivering of
quality services.

A public private partnership recognize that both the public and the private partnership
sectors have certain advantages relative to the other in the performance of specific tasks by
allowing each sector to do what it does best, public services efficient manner. The
government‟s goal is to encourage and promote local entrepreneurship by providing small
scale investment opportunity.

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4.4 PPP – MEANING: DEFINING PUBLIC PRIVATE PARTNERSHIP
PPPs broadly refer to long term, contractual partnership between the public and private sector
agencies specially targeted towards financing, designing, implementing and operating
infrastructure facilities and services that were traditionally provided by the government or its
agencies. These collaboration ventures are built around the expertise and capacity of the
project planners and are based on a contractual agreement, which ensures appropriate mutually
agreed allocation of resources, risks and returns. This approaching and developing public
utilities and infrastructure by the private sector under terms and conditions agreeable to both
the government and the private sector is called PPP.
PPP means an arrangement between a government / statutory entity / government owned entity
on one side and a private sector entity on the other for the provision of public assets and public
services through investment being made and / or management being undertaken by the private
sector entity for a specified period of time where there is well defined allocation of risk
between the private sector and the public entity and the private entity receives performance
linked payments that conform to specified and pre determined performance standards,
measurable by the public entity or its representative.
Essential conditions in the definition are the following.
 Arrangement with private sector entity: The asset or service under the contractual
arrangement will be provided by the private sector entity to the users.
 Public asset or service for public benefit: The facilities / services being provided are
traditionally provided by the government as a sovereign function to the people.
What is meant by public services?
Public services are those services that the state is obligated to provide to its citizens or where
the state has traditionally provided the services to its citizens.
What is meant by public asset?
Public asset is that the use of which is inextricably linked to the delivery of a public service or
those assets that utilize or integrate sovereign assets to deliver public services.
Ownership by government need not necessarily imply that it is a PPP.
 Investment being made and management undertaken by the private sector entity: The
arrangement could provide the financial investment or non financial investment by the
private sector the intent of the arrangement is to harness the private sector efficiency in
the delivery of quality services to the users.
 Operations and management for a specified period: The arrangement cannot be in
perpetuity. After a pre determined time period the arrangement with the private sector
entity comes to a closure.
 Risk sharing with the private sector: Mere outsourcing contracts are not PPPs.
 Performed linked payments: The central focus is on performance and not merely
provision of facility or service.
  Conformance to performance standard: The focus is on a strong element of service
delivery aspect and compliance to pre determined and measurable standards to be
specified by the sponsoring authority.
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4.5 SIGNIFICANCE OF PUBLIC PRIVATE PARTNERSHIP
Public Private Partnership (PPP) involves a contract between a public sector authority and a
private party, in which the private party provides public service and assumes substantial
financial, technical and operational risk in the project. PPP as a long tested model in one form
or the other has taken a systematic shape with government / public administration and private
organizations recognizing each other‟s capacities, capabilities and competencies.
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4.6 ADVANTAGE OF PUBLIC PRIVATE PARTNERSHIP
 A public private partnership can be a means of leveraging public and private resources
to enhance local entrepreneurship especially among potential entrepreneurs.

 Given the nature and diversity of public private partnership, there is potential for
accomplishing both the public private partnership process while strategically
stimulation small enterprises.

 A public private partnership would typically improve efficiency in the public sector and
increase capacity development for local business.

 Taking a public private partnership strategy in the rural sector does not only encourage
efficient allocation of public and private resources through leverage and long term
capacity development but it also provides an opportunity for innovation,
competitiveness and subsequent reduction in poverty levels.

 Small enterprises in rural small towns of developing countries do not usually get
opportunities to subcontract with large organizations which often are foreign owned
and keen on subcontracting with other foreign firms or developing their own
subsidiaries in the host country, without such opportunities for experience and
investments, the enterprises fail to develop strong track records for growth and potential
competition. A strategic government policy and regulatory mechanisms that encourage
 a variety of public private partnership in these areas would strengthen small town
enterprises while at the same time stimulating entrepreneurial interest.

Check Your Progress Exercise 1

Note: i) Use this space given below to answer the question.

ii) Compare your answer with the one given at the end of this Unit.

1. Define Public Asset.

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4.7 TYPES OF PPP
There are various types Public Private Partnership. The types are given below.
Service contract
 Under a service contract, the public authority (government) hires a private company
(entrepreneur) to carry out one or more specified tasks or services for a period typically
1-3 years.
 The public authority remains the primary provider of the infrastructure service and
contracts out only portions of its operation to the private partner.
 The private partner must perform the service at the agreed cost and must typically meet
performance standards set by the public sector.
 The government pays the private partner a predetermined fee for the service which may
be a one time fee, based on unit cost or some other basis.

Management contract
 A management expands the service to be contracted out to include some or all of the
management and operation of the public service ( i.e., utility, hospital, port authority
etc).
  Although ultimate obligation for service provision remains in the public sector, daily
management control and authority is assigned to the private partner or contractor. In
most cases the private partner provides working capital but no financing for investment.
 The private contractor is paid a pre-determined rate for labour and other anticipated
operating costs.
 Management contract variants include supply and service contract, maintenance
management and operational management.
Lease contract
 Under a lease contract, a private partner is responsible for the service in its entirety and
undertakes obligations relating to quality and service standards.
 Except for new and replacement investments, which remain the responsibility of the
public authority, the operator provides the service at his expense and risk.
 The duration of the leasing contract is typically 10 years and may be renewed upto 20
years.
 Responsibility of the service provision is transferred from the public sector to the
private sector and the financial risk for operation and maintenance is borne entirely by
the private sector operator.
 In particular the operator is responsible for losses and for unpaid consumers‟ debts.
 Leases do not involve any sale of assets to the private sector.

Concessions
 A concession makes the private sector operator responsible for the full delivery of
services in a specified area including operation, maintenance, collection, management
and construction and rehabilitation of the system.
 Importantly, the operator is now responsible for all capital investment. Although the
private sector for providing the assets such assets are publicly owned even during the
concession period.
 The public sector is responsible for establishing performance standards and ensuring
that the concessionaire meets them. In essence the public sector‟s role shifts from being
the service provider to regulating the price and quality of service.
 The concessionaire collects the tariff directly from the system users.
  The tariff is typically established by the concession contract which also includes
provisions on how it may be changed over time.
 In some cases the government may choose to provide financing support to help the
concessionaire fund its capital expenditure.
 The concessionaire is responsible for any capital investments required to build, upgrade
or expand the system and for financing those investments out of its resources and from
the tariffs paid by the system users.
 A concession contract is typically valid for 25-30 years so that the operator has
sufficient time to recover the capital invested and earn an appropriate return over the
life of the concession.
 Government may contribute to the capital investment cost by way of subsidy (viability
Gap Funding – VGF) to enhance commercial viability of the concession.
 The concessions are effective contracts to provide investment for creation of new
facilities or rehabilitation facilities.

Build Operate Transfer (BOT)

 BOT and similar arrangements are a kind of specialized concession in which a private
firm or consortium finances and develops a new infrastructure projects or a major
component according to performance standards set by the government.
 Under BOTs, the private partner provides the capital required to Build the new facility,
Operate & Maintain (O&M) for the contract period and then return the facility to
governments as per agreed terms.
 Importantly, the private operator now owns the asset for a period set by contract –
sufficient to allow the developer time to receive investment costs through user charges.
BOTs generally require complicated financing packages to achieve the large financing and
long repayment periods required. A the end of the contract, the public sector assumes
ownership but can opt to assume operating responsibility , contract the operation responsibility
to the developer or award a new contract to a new partner. The main characteristics of BOT
and similar arrangements are given below:
 Design Build (DB): Where private sector designs and constructs at a fixed price and
transfers the facility.
  Build Transfer Operate (BTO): Where private sector designs and builds the facility.
The transfer to the public owner takes place at the conclusion of construction.
Concessionaire is given the right to operate and get the return on investment.
 Build Own Operate (BOO): A contractual arrangement whereby a Developer is
authorized to finance, construct, own, operate and maintain an Infrastructure or
Development facility from which the Developer is allowed to recover his total
investment by collecting user levies from facility users. Under this project, the
Developer owns the assets of the facility and may choose to assign its operation and
maintenance to a facility operator. The Transfer of the facility to the Government,
Government agency or the Local Authority is not envisaged in this structure; however
the Government may terminate its obligations after specified time period.
 Design-Build Operate (DBO): Where the ownership is involved in private hands and a
single contract is let out for design construction and operation of the infrastructure
project.
 Design Build Finance Operate (DBFO): While the design-build-finance-operate
(DBFO) approach, the responsibilities for designing, building, financing and operating
and maintaining are bundled together and transferred to private sector partners. DBFO
arrangements vary greatly in terms of the degree of financial responsibility that is
transferred to the private partner.
 Build-operate-Transfer (BOT): Annuity / Shadow User Charge: In this BOT
Arrangement, private partner does not collect any charges from the users. His return on
total investment is paid to him by public authority through annual payments (annuity)
for which he bids. Other option is that the private developer gets paid based on the
usage of the created facility.

Joint Venture
 Joint ventures are alternatives to full privatization in which the infrastructure is co-
owned by the public sector and private operators.
 Under a joint venture, the public and private sector partners can either from a new
company (SPV) or assume joint ownership of an existing company through a sale of
shares to one or several private investors.
  A key requirement of this structure is good corporate governance in particular the
ability of the company to maintain independence from the government because the
government is both part owner and regulator.
 From its position as share holder however, the government has an interest in the
profitability and sustainability of the company and can work to smoothen political
hurdles.
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4.8 PPPs FOR THE PROMOTION OF ENTREPRENEURSHIP IN RURAL AREAS
Increased income in the rural areas boost the rural market economy increases the pool of casual
labourers and promotes increased investment in small business. Therefore programmes that
encourage entrepreneurship in rural areas would not only arrest the migratory trends but also
create new local markets for rural produce. At worst entrepreneurship will provide relevant
skill to survive in large urban areas who eventually decide to move on. However without a
strategic government policy to do so, the migratory trend will continue to grow with severe
negative implications. Hence there is need for public –private partnership in rural areas to
create possibilities for alternative income generation for the youth and progressive farmers who
would otherwise leave to search for entrepreneurial jobs in urban areas.

The need for PPP in the Indian Infrastructure sector has been well recognized by the
Government of India and the steps taken to encourage PPPs are promising. Such steps include:
 Standardizing contractual documents as sector specific Model contracts / Concession
Agreements.
 Standardizing bidding documents.
 Establishing institutional mechanism like the Infrastructure Finance Company Limited
to facilitate infrastructure development and PPP.
 Creating the India Infrastructure Development Fund.
 Relaxing the restrictions on foreign direct investment in most infrastructure sectors and
Fiscal incentives including income tax Act, 1961 and state laws to developers and
lenders of infrastructure Projects.
National Skill Development Corporation (NSDC) is a no-for-profit –company set up by the
Ministry of Finance under section 25 of Companies Act. It has an equity base of 10 crores of
which the government of India accounts 49 per cent while the private sector has the balance 51
per cent.

The National Skill Development Corporation (NCDC) is a first of its kind, PPP in India set up
to facilitate the development and upgrading of the skills of the growing Indian workforce
through skill training programmes. A large part of the organization‟s efforts are directed at the
private sector and towards developing the skills in the unorganized sector in India. It supports
skill development efforts by funding skill training and development programmes. It also
engages in advocacy and training programmes, in depth research to discover skill gaps in the
Indian workforce and developing accreditation norms.

It aims to promote skill development by catalyzing creation of large, quality, for-profit

vocational institutions. It provides funding to build scalable, for-profit vocational training
initiatives. Its mandate is also to enable support systems such as quality assurance, information
systems and train the trainer academies either directly or through partnerships.
The NSDC acts as a catalyst in skill development by providing funding to enterprises,
companies and organizations that provide skill training. It will also develop appropriate models
to enhance support and coordinate private sector initiatives.
Need for NSDC
A growing economy like India requires a large and skilled workforce. However the lack of
quality trainers and training institutes has created roadblocks to growth. Skill shortage is
evident in every sector of the economy. NSDC seeks to fill the gap between the growing
demand for and the scarce supply of skilled personnel across sectors by funding skill training
programmes. The primary goal is to foster private sector and industry participation in skill
training and development.

The sectors for which services are provided by NSDC are given below. The NSDC focuses on
twenty high priority sector and unorganized sectors
 Automobile / auto companies;
  Electronic hardware;
 Textile and garments;
 Leather and leather goods;
 Chemicals and pharmaceuticals;
 Gems and jewellery;
 Building and construction;
 Handloom and handicrafts;
 Food processing;
 Building hardware and home furnishings;
 IT or software;
 Tourism, hospitality and travel;
 Transportation / logistics / warehousing and packaging;
 Organized retail;
 Real estate;
 Media, entertainment, broadcasting, content creation, animation;
 Health care;
 Banking, insurance and finance;
 Education /skill development; and
 Unorganized sector;
Role of NSDC
 Funding and incentivizing; Enabling support services and Shaping / creating
Management of NSDC
NSDC is a public private partnership and is managed by a team of experienced professionals.
A three tier decision making structure – a Board, Board sub committees and the Executive
council – helps the organization formulate strategies.
Both central government and the states are aiming to use PPP more intensively to help meet
gaps in the provision of basic services to entrepreneurs. India has seen real progress over the
last 10 years in attracting private investment into the infrastructure sectors, first in
telecommunications and now in ports and roads and in individual projects in other sectors.
There is the potential for PPPs to contribute more and help meet the infrastructure gap in India.
In shifting from more traditional methods of service provision, governments need to adapt both
their skill and their processes to ensure that PPP programmes deliver what is expected of them.
The cornerstone of this is ensuring that PPPs that proceed are those which represent priority
projects and are best done through the PPP route rather than through traditional than public
procurement. Governments embarking on PPP programmes developed new policy, legal and
institutional frameworks top provide the required organizational and individual capacities. New
agencies are sometime create to bring in financial and contract design skills not present in the
government and existing processes for example in planning and budgeting need to be adapted.
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4.9 PPPs IN INDIA
In the 12 states and 3 central agencies surveyed there are at least 86 PPP projects in the sectors
of focus for which a contract has been awarded and projects are under way ( in the sense that
the project are either operational, have reached construction stage or atleast construction /
implementation is imminent). The estimated project cost of these PPPs is Rs.339.5 billion.
There has been considerable innovation in the design of these with different structures now
being developed to attract private participation. But at the same time it is clear that this has
been uneven – there are islands of progress with some states having undertaken far more PPPs
than others and a much heavier use of PPPs in some sectors (roads by number of projects and
ports by project size) than others. While there are a number of successful projects, there have
also been a number of poorly conceptualized PPPs.

Successful PPP programme will require the public sector to develop better capacities to
identify possible PPPs, to develop bankable contacts and bid them oust and to monitor the
performance and costs. However successful programs are characterized by clear policy and
legal frameworks for PPPs and efficient oversight and dispute resolution procedures. There are
some critical steps to scaling up the PPP programme in India and assess actions that could be
taken by the centre in the following areas.
 Strengthening the monitoring of their fiscal costs;
 Policy and legislative frameworks;
 Information dissemination;
 The development of guidance material; and
  Setting up a PPP unit to serve as a pool of expertise.

Table 1 PPP projects in India -examples

Name Agency Sector Cost structure Private

(Rs.million) contractor
Andhra Pradesh APIC Urban 4500 BOT Lassen and
Visakapattinam infrastructure Toubro
Industrial water
supply project
Delhi- Municipal Urban 590 ---- Subhash
collection and Corporation infrastructure Projects and
transportation of of Delhi Marketing Ltd
Municipal Solid for central city
Waste and south zone,
City Lifeline
consultants for
west zone and
Anthony Waste
Management for
Karolbagh and
Sadar Pahar
Ganj zone
Gujarat- R&B Roads 3780 BOT L&T Ltd.-
Ahmadabad- department ECCIL &FS
Mehsana road
Madhya PWD Roads 4.8 BOT Ayushyaraj
Pradesh- Bridge construction
on Indore
Khandwa
stretch
Tamil Nadu- Karur Road 154.5 BOT East Coast
Karur Toll Municipality Construction
Bridge & Tamil Nadu and Industries Pt
urban Ltd.
development
project
Solid waste Corporation Urban 400 -- CGEA- Area
management in of Chennai & infrastructure Holdings
Chennai TIDCO Singapore was
selected through
ICB to
implement the
project
Tirupur water NIADCL,SPV Urban 1850 BOT Consortium-
supply scheme formed by infrastructure Mahendra and
Tamil Nadu L&T
Water
Investment
Ltd.
Pune Khed road NHAI Roads 1276 BOT ATR
Infrastructure
Private Ltd.
Check Your Progress Exercise 1

Note: i) Use this space given below to answer the question.

ii) Compare your answer with the one given at the end of this Unit.

1. Write short note on National Skill Development Corporation

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2. What is Build Operate Transfer (BOT)?
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4.10 CASE STUDY

Project Shakthi is a rural distribution initiative of Hindustan Unilever Limited (HUL) that
targets small villages populated by less than 5000 individuals. It is a unique win-win initiative
that catalyses rural affluence even as it benefits business. As a joint venture with government,
Hindustan Uni Lever has started a programme for women empowerment through women
entrepreneurship.
Aim of Project Shakti
HUL has been engaged in rural development since 1976 with the initiation of Integrated Rural
Development Programme. Partnering with the Self Help groups (SHGs), HLL started its
Project Shakti in Nalgonda district of Andhra Pradesh in 50 villages in the year 2001. The
social side of the project Shakti was that it aimed to create income generating capabilities for
under-privileged rural women by providing a sustainable micro enterprise opportunity and to
improve rural living standards.
Mechanism of Project Shakti
A woman from a SHG is selected as a Shakti entrepreneur, commonly referred as “Shakti
Amma” who receives stocks from the HLL rural distributors. After getting trained by the
company, the Shakti entrepreneur then sells those goods directly to the consumers and retailers
in the village. Each Shakti entrepreneur usually services 6-10 villages in the population strata
of 1000-2000 people with 4-5 major brands of HLL – Lifebuoy, Wheel, Pepsodent, Annapurna
salt and Clinic plus. Apart from this, other brands included are Lux, Ponds, Nihar and 3 Roses
tea. The Shakti entrepreneurs are given HLL products on a‟ cash and carry basis‟. However the
local SHGs or banks provide them micro credit wherever required. HLL Project Shakti is
adding up to 15 per cent of HLL sales in rural AP.

The financial performance of Shakti Entrepreneur

The Shakthi entrepreneur programme recognizes that while micro credit plays a key role in
alleviating poverty, its ability to do so depend on the availability of investments opportunities.
Shakthi contributes by creating profitable micro enterprise opportunities for rural women.
Armed with micro credit, rural women become shakthi entrepreneurs through Direct-to-home
distributors in rural market. This micro enterprise offers low risks and high returns. The
products distributed are some of the country‟s most trusted brands of consumers‟ goods and
include a range of mass market products especially relevant to rural consumers.
Training to Shakti entrepreneurs
Moreover HUL invests its resources in training the entrepreneurs helping them become
confident, business –savvy professionals capable of running their own enterprise. The Shakti
Entrepreneur is also called as „Shakti Amma‟-shakti means power/empowered and „amma‟
means mother in Telungu, the language spoken in Andhdrapradesh where Project Shakti was
first piloted in 2000. Project Shakti has proved to be a great success for HUL and for rural
impoverished women in India. The project started in a few pilot villages in AP in 2000. In
2002 it expanded to two states and by the end of 2004 had grown to over 13000 Shakti women
entrepreneurs in 12 states. Today there are about 45000 shakti entrepreneurs across 15 states in
India.
In 2010, HUL rolled out the Shaktiman initiative through Project Shakti. Through the
Shaktiman initiative, men in the Shakti Amma families distribute HUL products to villages
adjoining the respective Shakti village. Through the Geographical Information System villages
around the Shakti families are tracked and based on this they are allotted five to six villages.
They go to these villages and sell HUL products. The Shaktimann have also been given
bicycles to ensure smooth traveling between villages.
HUL now has over 26000 Shaktimaans through the Project Shakti network across the country
now. The revenue earned by the Shaktimannn further augments the household income of the
Shakti family.

Through Project Shakti HUL reaches over 100,000 villages across 15 states in India and over a
million households every month HUL works closely with various NGOs, banks and both state
and local governments, who recognize the potential for economic growth by encouraging
women to become entrepreneurs.
With average sales being in the range of rs.10,000 to rs.15000/month profit earned would be
rs.1000 per month. On an average a Sales Executive earns Rs.700 –Rs.1000 a month and since
most of them live below the poverty line this earning is significant often doubling the
household income with which the rural women live in improved conditions affording the basic
needs of life such as nutrition, education etc. With the roll out of Shaktiamman initiative Shakti
families have an opportunity to further augment their income. In 2011, HUL partnered with
SBI to bring banking services to low income people in small Indian villages through the Shakti
Ammas. The Shakti Ammas are already trusted by local communities and make them friendly
and accessible way to promote access to banking in rural communities and thus promote
financial inclusion.
With the vision to cover 5 lakh villages in 2012 through social communication programme
namely Shakti-vani trained Shakti women are making rural people informed about those
products that are directly related to the health and hygiene aspect of human beings. In 2004
Shakti Vani covered 10,000 villages in Madhya Pradesh, Chhattisgarh and Karnataka. The
vision of i-shakti, the internet based information service is to have 10,000 kiosks across the
state.

The PPP model needs to be acknowledged According to A & M‟s Most Admired Marketing
Companies Survey, Hindustan Lever Limited had a contribution of RS.5000 crore from the
rural market. That was a whopping 50 per cent of its total sales turnover and its 2006 revenue
were 42.8 billion. In 2009 its turnover was Rs.10245 crore and its market capitalization was at
Rs. 28846 crore while its total size of the business was a little over Rs.100 crores. In many
cases earnings from Shakti help them double their household income and a greater part of that
goes to children‟s education which means more protected members of the future generation.
According to media reports shakti distributors now account for 15 per cent of the company‟s
sales in rural India. Meanwhile the potential for growth is enormous.

As a viable means of empowering women entrepreneurs for rural market development in India
via the model of business opportunity development. It is also suggested that the business
organizations should take lessons from such a novel initiative. It is recommended that
businesses follow the same path to get a huge gain in future by simultaneously working for the
welfare of these customers.
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4.11 SUMMING UP
Public Private Partnership is one the strategy in the New Public management to increase the
efficiency in from Project formulation till project implementation. It is also ensure the
partnership of private players. There are different types of Public Private Partnership is
implemented. In this Unit, we have discussed the different types of PPP and how PPP model
can be also part of empowering women entrepreneurs. The Unit elaborately cited example of
national Skill Development Council and Project Shakti.
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4.12 GLOSSARY
Skill Development: According to the International Labour Organization (ILO) “Skill
development is of key importance in stimulating a sustainable development process and can
make a contribution in facilitating the transition from an informal to formal economy. It is also
essential to address the opportunities and challenges to meet new demands of changing
economies and new technologies in the context of globalization.
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4.13 ANSWERS TO CHECK YOUR PROGRESS
Check Your Progress Exercise 1
1. Public asset is that the use of which is inextricably linked to the delivery of a public
service or those assets that utilize or integrate sovereign assets to deliver public
services.
Check Your Progress Exercise 2
1. BOT and similar arrangements are a kind of specialized concession in which a private
firm or consortium finances and develops a new infrastructure projects or a major
component according to performance standards set by the government. Under BOTs,
the private partner provides the capital required to Build the new facility, Operate &
Maintain (O&M) for the contract period and then return the facility to governments as
per agreed terms. Importantly, the private operator now owns the asset for a period set
by contract – sufficient to allow the developer time to receive investment costs through
user charges.
 2. NSDC is a no-for-profit –company set up by the Ministry of Finance under section 25
of Companies Act. It has an equity base of 10 crores of which the government of India
accounts 49 per cent while the private sector has the balance 51 per cent.

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4.14 REFRENCES AND SUGGESTED READINGS
Chaudhury,S.K. (ed), (2013). “Empowering Rural Women Entrepreneurship in India” S.K.
Book Agency, New Delhi.

Thuy, H.P. 2008). Uni lever India: Hindustan Leers Project Shakti”,
http://thuyhamanagement.blogspot.com

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4.15 QUESTIONS FOR REFLECTION AND PRACTICE

1. Define Public Private Partnership.

2. Explain the advantages of PPP to promotion of women entrepreneurship.
3. Discuss the different types of Public Private Partnership.
4. Write a note on joint venture.
5. State the objectives of NSDC.