In which sector the PPP model is majorly used 2 mark ........

Finance (RBI) Others

A passage on Infrastructure and PPP

Introduced in January 2016 to revive investments in road infrastructure projects, ____ has seen good initial success. It is a mix of the EPC (engineering, procurement, and construction) and BOT (build, operate, transfer) models. Under the EPC model, NHAI pays private players to lay roads. The private player has no role in the road’s ownership, toll collection or maintenance (it is taken care of by the government). Under the BOT model though, private players have an active role — they build, operate, and maintain the road for a specified number of years — say 10-15 years — before transferring the asset back to the government.

In which sector the PPP model is majorly used? (2 mark)

This questions was previously asked in

RBI Grade B Phase 2 Exam (2021)

View All RBIB Previous Year Papers

Manufacturing

Infrastructure

Textiles

Food Processing

None of the above

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Explanation:

- The passage discusses a model introduced for road infrastructure projects, which merges aspects of EPC and BOT models.

- EPC (Engineering, Procurement, and Construction) involves the government paying private companies to construct roads. The government maintains ownership and responsibility.

- BOT (Build, Operate, Transfer) allows private companies to build, operate, and maintain roads before eventually handing them back to the government.

- The Public-Private Partnership (PPP) model is commonly used in sectors requiring substantial investment and management expertise, like infrastructure.

Option Analysis:

- Option 1: Manufacturing - PPP is not predominantly used here.

- Option 2: Infrastructure - This is the primary sector for PPP usage, particularly in roads, bridges, and utilities.

- Option 3: Textiles - Uncommon for PPP.

- Option 4: Food Processing - Also not typical for PPP.

- Option 5: None of the above - Incorrect, as infrastructure is a viable option.

Correct Answer: Option 2 - Infrastructure