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.

1. Public Private Partnership Appraisal Committee (PPPAC)

The Cabinet Committee on Economic Affairs (CCEA) in its meeting of October 27, 2005 approved the procedure for approval of public private partnership (PPP) projects vide Notification dated November 29, 2005. For details, please refer to 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. The appraisal mechanism for the PPP projects was streamlined to ensure speedy appraisal of projects, eliminate delays, adopt international best practices and have uniformity in appraisal mechanisms and guidelines. 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

The Committee may co-opt experts as necessary. The Committee is serviced by the Department of Economic Affairs.

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

  1. Procedure for approval of PPP Projects and Guideline for formulation, appraisal and approval of Public Private Partnership (PPP) Projects in Central Sector Notification dated January 12, 2006

    Download form

  2. Guidelines for formulation, appraisal and approval of Public Private Partnership (PPP) Projects costing less than Rs.100 Crore
    Download form
  3. Guidelines for formulation, appraisal and approval of Public Private Partnership (PPP) Projects
    (i) Of all sectors costing more than Rs.100 crore and less than Rs.250 crore.
    (ii) Under NHDP costing Rs.250 crore or more and less than Rs.500 crore.
    Download form
  4. A compendium of guidelines for Formulation, Appraisal and Approval of Central Sector Public Private Partnership Projects, is available below:


2. Committees constituted pursuant to CCEA's decision dated March 22, 2007 regarding Modification of Appraisal Procedure for PPPs

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 vide Notification dated April 02, 2007. The approval procedure had originally been approved by CCEA in its meeting of October 27, 2005.

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 is being set up comprising of the following:

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

For appraisal of individual projects under NHDP which are of Rs.250 crore or more but less than Rs.500 crore and which fulfill certain specified conditions, a Committee comprising of the following is being set up:

  • Secretary, Department of Economic Affairs
  • Secretary, Department of Road Transport and Highways.

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 CCEA approval and PPPAC appraisal. 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.


3. Revision of the Delegation of Powers for appraisal and approval by Competent Authorities

The delegation of powers for appraisal and approval by the competent authorities have been revised from time to time, after CCEA approval. The latest orders with respect to delegation of powers are as follows:

  1. Modification in Delegation of powers for Formulation, Appraisal and Approval in respect of PPP National Highways Projects OM dated July 9, 2013
  2. Modification in Delegation of powers for Formulation, Appraisal and Approval in respect of PPP National Highways Projects OM dated March 12, 2015
  3. Modification in Delegation of powers for Formulation, Appraisal and Approval in respect of PPP National Highways Projects OM dated April 12 , 2016