Appraisal and Approval Mechanisms for Central Sector PPPs Appraisal and Approval Mechanisms for Central Sector PPPs

This section contains Guidelines notified by the Government of India for formulation, appraisal and approval of Central Sector PPP projects.

Government of India has streamlined the appraisal and approval mechanism for Central Sector PPP projects to ensure speedy appraisal of projects, eliminate delays, and have uniformity in appraisal mechanisms. The Cabinet Committee on Economic Affairs (CCEA) in its meeting of October 27, 2005 approved the procedure for approval of Central Sector Public Private Partnership (PPP) projects (OM 2/10/2004-INF dated November 29, 2005) in Annex-I. Pursuant to this decision, in 2006, the Government of India (GOI) notified the appraisal mechanism by setting up of the Public Private Partnership Appraisal Committee (PPPAC) responsible for the appraisal of PPP projects in the Central Sector (OM 1/5/2005-PPP dated January 12, 2006).

The detailed Procedure and Guidelines for appraisal/approval procedure to be followed for Central Sector PPP projects are provided below:

  1. Procedure for formulation, appraisal and approval of Public Private Partnership (PPP) Projects costing less than Rs.100 Crore:

    Detailed procedure to be followed for appraisal / approval of PPP projects involving less than Rs. 100 crore is specified in the Guidelines for formulation, appraisal and approval of Public Private Partnership (PPP) Projects costing less than Rs.100 Crore.

  2. Procedure for formulation, appraisal and approval of Public Private Partnership (PPP) Projects:

    1. Projects costing more than Rs. 100 Crore (except Ports and NHDP, where the delegation of powers have been amended – refer point number III below) (OM 1/5/2005-PPP dated January 12,2006)

      PPP Projects in the Central Sector with cost exceeding Rs.100 crore or where the value of underlying assets is more than Rs.100 crore (except Ports and NHDP projects) require Public Private Partnership Appraisal Committee (PPPAC) appraisal/approval. On recommendation by PPPAC and after CCEA approval, the projects can be bid out.

      The PPPAC comprises of the following:

      • a. Secretary, Department  of Economic Affairs (in the Chair);
      • b. Secretary, Planning Commission(now CEO Niti Aayog);
      • c. Secretary, Department of Expenditure;
      • d. Secretary, Department of Legal Affairs; and
      • e. Secretary of the Department sponsoring a project

    2. Two Member Appraisal and Approval Process-PPP Projects costing more than Rs.100 crore and less than Rs.250 crore. (except Ports and NHDP, where the delegation of powers have been amended – refer point number III below)

      The Cabinet Committee on Economic Affairs (CCEA) in its meeting of March 22, 2007 approved modification in approval procedure for Public Private Partnership (PPP) projects (OM 10/3/2006-Infra dated July 24, 2007).

      Pursuant to the decision of the CCEA, a Committee for appraisal of PPP projects of all sectors of cost greater than Rs. 100 crore but less than Rs. 250 crore has been set up comprising of the following:

      • Secretary, Department of Economic Affairs
      • Secretary of the Ministry/Department sponsoring the project.

      Detailed process and guidelines are given here (OM 10/3/2006-Infra dated July 24, 2007)

  3. NHDP and Ports

    There have been revisions in the delegation of powers for appraisal and approval of NHDP projects, including discontinuation of the Two-member Committee and revision in the threshold limit of project cost for requirement of PPPAC appraisal and CCEA approval. In November 2015, the CCEA decided that only those NHDP projects with Civil Construction Cost above Rs. 1000 crore would need PPPAC appraisal and CCEA approval. The revised orders for delegation of powers related to the National Highways and Ports sectors, are as follows:

    Revised delegation of Powers – National Highways

    1. OM 1/22/2012-PPP dated July 9, 2013
    2. OM 1/22/2012-PPP dated March 12, 2015
    3. OM 1/22/2012-PPP dated April 12 , 2016

    Revised delegation of Powers – Ports

    1. OM 25021/6/2006-PD-III dated September 22, 2014

  4. Compendium and Forms

    1. The compendium of guidelines for Formulation, Appraisal and Approval of Central Sector Public Private Partnership Projects, is available below:

    2. Format for Approval and Appraisal:

      For submission to PPPAC Download form
      For project cost from 100 to 250 crores (250 To 500 crores for NHDP and Port sector projects)
      Download form
      For project cost up to Rs. 100 crores
      Download form