Page 1 of 7
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 04
April 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 43
Public, Private and Partnership a Case
Study of Hyderabad Metro Rail
Dr. V.VENKATESHAM
PDF Research scholar Department of Public Addministration Osmania University Hyderabad 07
ABSTRACT:
A long-term contract between a private party and a government entity, for providing a public
asset or service, in which the private party bears significant risk and management responsibility
and remuneration is linked to performance. Encompasses PPPs that provide for both new and
existing assets and related services. Includes PPPs in which the private party is paid entirely by
service users, and those in which a government agency makes some or all payments.
Encompasses contracts in many sectors and for many services, provided there is a public interest
in the provision of these services and the project involves long-life assets linked to the long term
nature of the PPP contract. The project functions transferred to the private party—such as
design, construction, financing, operations, and maintenance—may vary from contract to
contract, but in all cases the private party is accountable for project performance and bears
significant risk and management responsibility.
INTRODUCTION:
Infrastructure is vital to a nation’s economic
growth and is considered to be the backbone
on which the society is built. Poor transport
and communications infrastructure inhibit
participation of developing countries in
global production networks (Limao and
Venables, 2001).Funding constraints to
construct and maintain such infrastructure
has encouraged the use of innovative
mechanisms like Public- Private Partnerships
(PPPs) PPPs have the advantage of private
sector operating efficiently (using technology
and management) and thereby reducing
costs. However, public involvement is
needed to ensure this happens such that it
benefits the society. Therefore, improvement
in transportation infrastructure through PPPs
is the way forward (Foster and Briceno- Garmendia, 2010 ).
Public Private Partnership (PPP):
More cities are now leveraging on the private
partnership for development and
implementation of metro rail projects by way
of unbundling the various activities and
components to capitalize on the private
resources, expertise and entrepreneurship.
Government will encourage Public Private
Partnership (PPP) for implementation of the
metro rail projects in the country. State
Government desirous of availing central
financial assistance for metro rail system in a
city should mandatorily explore the
possibility of having a PPP arrangement.
Mumbai Metro Line1 and Hyderabad metro
rail have been taken up with Viability Gap
Funding (VGF) from Government of India.
The Rapid Metro in Gurugram is an initiative
of Government of Haryana where full
funding is by the private concessionaire. The
following broad models of PPP are some of
Page 2 of 7
Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 04
April 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 44
the options for a way forward for PPP in
Metro Rail:
i. Construction of new Metro
Rail systems through
DBFOTs (Design-Build- Finance-Operate- Transfer);
ii. ii. Award of Concessions for
operational services which
could include supply of
rolling stock;
iii. Award of Concessions for
maintenance and upgrading
of infrastructure.
METRO RAIL POLICY-2017:
Indian cities are growing rapidly. There is a
need to direct growth in a planned manner
with adequate attention to the transport
system at early stages in their development.
Cities are witnessing fast growth in the
number of personal motor vehicles, with
severe congestion and pollution being the
most visible manifestation of the growth in
the number of motor vehicles. Efforts at
remedying the situation will need to focus on
improving the public transport system. In
several cities this would require
implementation of Mass Transit systems
such as metro rail, bus rapid transit, light rail,
etc.
Transportation scenario in India:
Transport situation in most Indian
cities is rapidly deteriorating because
of the increasing travel demand and
inadequate transportation system.
Indian cities of all sizes are facing the
crisis of urban transport.
Large cities are facing an
unprecedented growth of personal
vehicles (two wheelers and cars) and
in medium and small cities different
forms of intermediate public
transport provided by informal sector
are struggling to meet the mobility
demands.
While researches show that the ideal
modal share of public transport
should be around 70%, however it is
in tune to only 35%–40% in India's
metro cities.
Growing cities, growing population and
growing traffic has invariably called for a
shift from private modes of conveyance to
public transport. A glance at the world's
developing nations indicates that well
planned Mass Rapid Transit Systems
(MRTS) exist successfully.
REVIEW OF LITERATUR:
ASSOCHAM (2011), study focuses on the rising
urban population of Indian cities and the
inefficient transit system which are inadequate
to handle the growing cities and a rising
population. It gives a complete report on the
advantages of Metro Rail transit system to
reduce traffic congestion and to connect the
different areas of a city with the commercial and
economic centres of a city. It gives the list of
cities with potential for Metro Rail System and
also gives the impact it will have on their
economic growth.
Murty et al (2006), performed social cost- benefit analysis of Delhi Metro. They tried to
measure the benefits and costs from Phase I and
Phase II projects covering a total distance of 108
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Journal for Studies in Management and Planning
Available at
http://edupediapublications.org/journals/index.php/JSMaP/
ISSN: 2395-0463
Volume 04 Issue 04
April 2018
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 45
kms in Delhi. The internal rate of return on
investments in the Metro is estimated as 17
percent while the economic rate of return is 24
percent. Accounting for benefits from the
reduction of urban air pollution due to the
Metro has increased the economic rate of return
by 1.4 percent.
Tiwari (2011) is another study that deals with
Benefits of a low cost and low carbon mass rapid
transit system in Indian urban cities. The study in
detail gives the various phases of the Delhi
Metro Rail project and the shows the planning,
financial and execution phases of the Delhi
Metro. The study also shows the revenue
generated and the saving the Government of
India makes by successful execution of the Delhi
Metro Rail project.
HYDERABAD METROPOLITAN CITY
IN INDIA:
Hyderabad city is one of the larger
metropolitan cities in India which has been
undergoing the burgeoning of its population
and facing the concomitant challenges of
traffic and transportation problems over last
couple of decades. The existing
transportation modes – buses and trains – are
already over-stretched and show the limits of
mass transportation in such large cities;
therefore, there is a need for developing
Mass Rapid Transit Systems (MRTS) in
them. The Hyderabad Metro Rail Project
(HMRP) is one of the few MRTS projects
undertaken in India with some of its own
distinctions. The HMRP is perhaps the first
MRTS project conceived and developed
under Public-Private Partnership (PPP)
model in India. It is on the verge of
completion now after sailing through a lot of
difficulties at the various stages of project.
This study is the importance of HMRP
towards improving the traffic and
transportation of Hyderabad city.
Benefits of Mass Rapid Transit Systems:
Mass Rapid Transit Systems in urban areas
not only facilitate easy and quick movement
of people but also have a positive impact on
the economic growth and quality of life. This
result in increased income and various
benefits to the society like reduced external
cost due to reduction in traffic congestion,
road and parking cost, transport cost and per- capita traffic accidents. Mass Rapid Transit
Systems tend to reduce per capita vehicle
ownership and usage and encourage more
compact & walkable development pattern
which provide developmental benefits to the
society. Reduction in cost and time of travel
lowers the cost of production of goods and
services which significantly improves city’s
competitiveness. One of the significant
contributions is substantial reduction in per
capita pollution emission bringing down
various chronic diseases; hence, results in
huge public health benefits.
PLANNING AND IMPLEMENTATION
OF METRO RAIL PROJECTS:
Metro Rail : A mode of Urban Transport:
Due to the very nature of urban transport and
its inseparable and intricate connect with the
issues of urban development, it is essential
that those who have overall perspective and
feel of the city formulate the plans for urban
transport for that city. Therefore, the
proposals for central assistance for an
