Delhi’s future planning must involve efficient partnerships | Hindustan Times
Delhi’s urban challenges are increasingly interconnected. Transport, housing, water, sanitation, energy, and health care form part of a wider urban system, in which decisions in one sector, more often than not, affect outcomes in others. As the national capital addresses the demands of a growing metropolis, the challenge is to ensure that investment, institutional capacity and technology translate into reliable public services. Public-private partnerships (PPPs) can most certainly contribute to this effort, but their success depends on the quality of governance that underpins them.
As the national capital addresses the demands of a growing metropolis, the challenge is to ensure that investment, institutional capacity and technology translate into reliable public services. (Sanchit Khanna/HT Photo)The case for PPPs, across sectors, rests on the potential to combine public oversight with private capital, expertise and operational capabilities. However, private participation does not automatically guarantee efficiency, nor does it diminish the government’s responsibility to citizens. The central question, therefore, is whether a partnership can deliver a public service more effectively, sustainably, and with significantly greater accountability than the available alternatives. The objective must be better public outcomes, not private investment for its own sake.
This approach requires integrated planning. Prime Minister (PM) Narendra Modi, has emphasised this principle in the context of PM Gati Shakti, the infrastructure, mobility, and logistics master plan, stating that it would ensure “true public-private partnership in infrastructure creation from infrastructure planning to development and utilization stage”. For Delhi, where infrastructure systems and public services are closely linked, this emphasis on coordination is particularly relevant.
A PPP must first be judged on whether it is the appropriate delivery model for the backdrop against it which it is proposed. Some projects may benefit from private investment and specialised expertise, while others may be better delivered directly by public institutions. Decisions should follow careful assessments of technical feasibility, financial viability, demand, social requirements and the capacity of the public authority to manage the arrangement. Choosing a PPP simply to mobilise capital risks confusing the means with the objective.
Equally important is a project’s long-term viability. Assessment cannot end with construction costs, financing or the completion deadline. A project may attract investment but prove financially unsustainable, or provide infrastructure that cannot be maintained adequately. Services may also become unaffordable to their intended users. Feasibility studies, realistic demand projections, financial and legal due diligence, and stakeholder consultations must, therefore, inform decisions from the outset.
Risk allocation is central to this process. The Kelkar Committee’s 2015 report on revitalising the PPP model highlighted the importance of rational risk-sharing and a stronger focus on service delivery. Risks should be assigned to the party best equipped to manage them, rather than transferred indiscriminately. Poorly designed contracts, unrealistic projections, and unclear obligations can lead to disputes and financial pressures, with consequences for public finances and service users. Careful preparation cannot eliminate uncertainty, but it can make risks more transparent and manageable.
Nor does the government’s responsibility end when a contract is awarded. Effective partnerships require transparent procurement, measurable performance standards, regular monitoring and credible dispute-resolution mechanisms. Long-term contracts must also account for changing demand, technology and operating costs without compromising accountability. Public authorities need the institutional expertise to oversee these arrangements and intervene when agreed standards are not met. Without effective oversight, the anticipated benefits of private participation may not translate into better services.
Institutional coordination is particularly important where the responsibilities of departments, regulators, and local bodies often intersect. Clearly defined responsibilities, effective information-sharing and timely decisions can improve project implementation. Digital tools can support this process, but technology is best leveraged to strengthen institutional coordination rather than substitute it.
Carefully designed partnerships will very likely play a significant role in urban mobility, waste management, water infrastructure, renewable energy and selected health care and education services going forward. Each sector, however, requires its own, specific assessment. Commercial viability must be considered alongside affordability, accessibility, environmental sustainability and the government’s obligations to citizens. Where commercial requirements conflict with essential public objectives, the appropriate response is to reconsider the project’s design or delivery model rather than overlook those trade-offs.
Delhi’s development will require sustained investment, but investment alone cannot resolve the challenges of a complex urban system. The quality of project preparation, the strength of public institutions and the discipline of contract management will be equally consequential. Experience from both successful and underperforming partnerships should inform future decisions, helping public authorities improve project design and avoid repeating mistakes.
PPPs are an instrument of governance, not a substitute for it. Their legitimacy rests on transparent processes, a fair distribution of risk and demonstrable public benefit. Their success should be measured by whether they improve the everyday lives of citizens through reliable services, well-maintained infrastructure, and the responsible use of public resources. That must remain the guiding principle as Delhi plans and builds for the future.
Taranjit Singh Sandhu is the lieutenant-governor of Delhi. The views expressed are personal
