Beunit 3
Beunit 3
Beunit 3
• Illustrate flows of income, output and expenditure in a market economy and account
for changes in the level and pattern of economic activity
Group Discussion
ON
PLANNING COMMISSION Vs NITI AAYOG
Public private partnership(ppp)
A public-private partnership (PPP) involves the private sector in aspects of
the provision of infrastructure assets or of new or existing
infrastructure services that have traditionally been provided by the
government. These collaborative ventures are built around the
expertise and capacity of the project partners and are based on a
contractual agreement, which ensures appropriate and mutually
agreed allocation of resources, risks, and returns
The Government of India defines a Public Private Partnership as: “Public
Private Partnership (PPP) Project means a project based on a contract
or concession agreement, between a Government or statutory entity
on the one side and a private sector company on the other side, for
delivering an infrastructure service on payment of user charges.”
• According to Asian Development Bank, the three main needs that
motivate governments to enter into PPP’s for infrastructure are:
1. To attract private capital investment (often to either supplement
public resources or release them for other public needs)
2. To increase efficiency and use available resources more effectively;
and
3. To reform sectors through a reallocation of roles, incentives, and
accountability.
Global PPP Scenario and India
PPPs are not new and have been around for a few centuries. In 16th-
and 17th-century France, roads and bridges were concessioned for
tolls in return for maintaining the routes. However, PPP’s have been
more in vogue in the last few decades as a model of financing,
especially infrastructure projects that the governments are so
interested in.
Public Private Partnership Models
Design Build (DB) Under this model, the government contracts
with a private partner to design and build a
facility in accordance with the requirements
set by the government. After completing the
facility, the government assumes
responsibility for operating and maintaining
the facility. This method of procurement is
also referred to as Build-Transfer (BT).
Design Build Operate (DBO) Under this model, the private sector designs
and builds a facility. Once the facility is
completed, the title for the new facility is
transferred to the public sector, while the
private sector operates the facility for a
specified period. This procurement model is
also referred to as Build-Transfer-Operate
(BTO).
Design Build Operate Maintain (DBOM This model combines the responsibilities
of design-build procurements with the
operations and maintenance of a facility
for a specified period by a private sector
partner. At the end of that period, the
operation of the facility is transferred
back to the public sector. This method of
procurement is also referred to as Build
Operate-Transfer (BOT).
• A group of 15 startup founders held a virtual meeting with the Competition Commission
of India (CCI) recently to apprise the regulator about Google’s anti-competitive policies in
India. The discussion involved Google’s recent imposition of its Play Store billing system
on Indian developers, as well as the 30% commission the company charges for selling
digital goods and services through the system.
• Vide its order dated 10 July 2020 (Order), the Competition Commission of India (CCI)
found that ten (10) enterprises had indulged in cartelization during the period 2009 to
2017. The Advisory further clarified that businesses were not allowed to take advantage
of COVID-19 to contravene any of the provisions of the Indian Competition Act (`Act’).
• Considering restrictions placed on physical movement, CCI immediately allowed
flexibility within its procedures—including electronic filing of antitrust cases as well as
combination notices including Green Channel notifications and deferment of non-urgent
cases. CCI also made the Pre-Filing Consultation (PFC) facility for combinations available
through video conference. A dedicated helpline was set up to attend to the queries of
stakeholders during the pandemic. Relevant public notices were regularly put on the
website of CCI for information of the relevant stakeholders. CCI has also put in place a
mechanism to conduct proceedings through video conferencing to avoid physical contact
and presence.
Foreign Exchange Management Act (FEMA)
• Registration of Companies
• Transfer of shares
• Deposits
• Power to investigate
• Freezing assets of a company
• Converting a public limited company into a
private limited company