News: The PPP 2.2 model has been proposed to support the Viksit Bharat 2047 vision by moving beyond capital mobilisation to capital circulation for faster infrastructure financing.

ABOUT PPP 2.2

• A next-generation Public-Private Partnership (PPP) model.
• Focuses on recycling capital, attracting global investors, and improving project financing instead of relying only on government funds and bank loans.

Key Pillars of PPP 2.2

• Capital Recycling: Refinance completed projects to free private capital for new projects (e.g., NHAI InvITs, Toll-Operate-Transfer (TOT)).
• Dynamic Loan Repricing: Reduce interest rates after projects become operational and less risky.
• Institutional Debt Funds (IDFs): Bring long-term investors (insurance, pension funds) into infrastructure financing.
• Global Capital: Attract sovereign wealth funds and pension funds through stable revenue models.
• Sub-national Capacity: Strengthen state governments and Urban Local Bodies (ULBs) for better PPP implementation.

Why is it Needed?

• Huge investment requirement: Around ₹185 lakh crore needed for 13,000 infrastructure projects by 2047.
• Reduce pressure on public finances.
• Address Asset-Liability Mismatch: Banks cannot efficiently fund long-term infrastructure using short-term deposits.
• Support Green Transition: Finance India's 1,800 GW renewable energy target by 2047.

Major Focus Areas

• Urban Infrastructure: Metro, electric buses, water supply, waste management.
• Logistics: Freight corridors, multimodal logistics parks, smart ports.
• Green Energy: Solar parks, wind energy, green hydrogen, battery storage.
• Digital Infrastructure: Data centres, rural broadband, edge computing.

Circular Economy: Waste-to-energy, water recycling, industrial effluent treatment