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Public-Private Partnerships for Sustainable Infrastructure

Dheeraj Panda, MD, Ammann India says integrating private players through Public-Private Partnerships is essential to achieve better, more sustainable outcomes.

BY Realty+
Published - Saturday, 21 Jun, 2025
Public-Private Partnerships for Sustainable Infrastructure

India’s road infrastructure is undergoing a transformation, with increased government investment aimed at enhancing connectivity and driving economic growth. While public spending continues to rise, integrating private players through Public-Private Partnerships (PPPs) is essential to achieve better, more sustainable outcomes.

Globally, PPPs have proven vital in accelerating infrastructure development. Developing countries like Indonesia, between 2020 and 2024, only 37% of the country’s IDR 6,000 trillion infrastructure budget came from government sources—the rest was mobilized through private investment. In India, the PPP framework enabled rapid expansion of NH network to 146,145 km (2025), doubling since 2004. Programs like Bharatmala and the Warehousing Scheme Agreements (WSAs) exemplify how PPPs can deliver scale and efficiency.

The Need for a Smarter PPP Model

The evolution of India’s PPP framework, especially through mechanisms like the Hybrid Annuity Model (HAM), is creating new opportunities for private participation. These models de-risk private players while ensuring public control over key infrastructure assets. For instance, while governments can cover land acquisition which continues to be a challenge, private partners can focus on handling construction and introducing innovative practices.

However, success depends on more than just financial structuring. PPPs must now address long-term viability, environmental sustainability, green financing, and technological integration—factors that can no longer be treated as optional in today’s infrastructure landscape.

Technology as the Accelerator

Private players bring a strong sense of capital efficiency, depth of technology and innovation to reshape the fundamental concept of how roads are built and maintained.

The model encourages use of new-age technologies, alternate and advanced materials innovative practices. For example, advanced recycling technologies can enable up to 100% reuse of asphalt, drastically reducing the dependence on virgin aggregates and minimizing environmental degradation. This lowers material costs and shortens construction timelines.

The shift towards renewable energy in construction, through electric machinery, biofuels, or hydrogen-based systems can help reduce the carbon footprint of infrastructure projects. These green investments however may have high upfront costs, which can be offset by public spending, allowing private firms to scale sustainable practices.

We have experienced firsthand reduction of significant operational downtime, lower lifecycle costs, and higher asset uptime as a result of integration of AI, IoT, and real-time data platforms. In projects such as Mehsana Bypass Widening Project with Wagad Infra as the lead contractor and the client being Roads & Bridges Department, Gujarat we have incorporated digital applications to improve accountability by offering transparent, real-time updates to stakeholders and regulators. Similar integration was done for BMC, Maharastra as well in the past.

Long-Term Value Creation through PPPs

PPPs are not just about project execution, they become enablers of systemic improvements. Faster Execution: Advanced equipment, automated control systems, and real-time monitoring allow faster decision-making and quality assurance, resulting in shorter construction cycles.

Sustainable Outcomes: World-class technology and best practices shaped by experience across diverse materials, geographies, and conditions drive high-impact outcomes through the creation of durable, sustainable, and future-ready infrastructure. These results not only justify the initial investments but are essential for critical projects and expressways that serve as engines of long-term economic growth. This is especially important given that repairs and maintenance of such infrastructure can be both complex and costly.

Professional Workforce Development: Private players are increasingly investing in comprehensive training programs for workers, engineers, and machine operators. By partnering with national skilling bodies, these initiatives are building a technically proficient, future-ready workforce, crucial for scaling infrastructure. As new technologies and automation become more prevalent, skilling the workforce becomes even more critical. Companies like Ammann are leading the way by offering advanced training in AI and IoT, using real-time simulations to bridge the gap between innovation and execution.

In Closing: Partnership is the sustained future

India’s infrastructure journey must balance speed with sustainability, innovation with inclusion, and growth with environmental responsibility. Public-private partnerships offer the best route to achieve this, especially when paired with policy support, green financing mechanisms, and a commitment to long-term value creation.

While we are witnessing a quiet shift towards growing commitment to do things differently, and better, for this potential to translate into national impact, government spending must not just be about building more, but about building better for today and tomorrow. By aligning incentives, de-risking innovation, and fostering greater collaboration, India can not only meet but exceed its infrastructure targets.

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