Budget 2020: PPP mode for hospitals, rural projects

New Delhi: The government plans to involve the corporate sector more in public private partnership (PPP) projects, including for rural connectivity and hospitals, with viability-gap funding to make those profitable.

Finance minister Nirmala Sitharaman said the Indian Railways would set up a 'Kisan Rail' through PPPs, to provide a smooth supply chain for perishable food items such as milk, meat and fish. For this, express and freight trains shall have refrigerated coaches, she said.

Along with food items, redevelopment of four railway stations and operation of 150 passenger trains would also be done under the PPP model. The process of inviting private corporations for these projects is underway, Sitharaman said.


The FM proposed setting up a viability-gap funding window to be used in constructing more hospitals under PPPs. For the first phase, only districts where there are no Ayushman Bharat empanelled hospitals presently will be considered, which Sitharaman labelled as “aspirational districts”. Five new smart cities will be developed with states under the PPP mode.