The Public Private Partnership Appraisal Committee (PPPAC) is the Union Government's standing inter-ministerial body that appraises Central Sector Public-Private Partnership (PPP) proposals before they are put out for competitive bidding.

Basic Details

  • Type: Inter-ministerial appraisal body under the Department of Economic Affairs (DEA), Ministry of Finance.
  • Constituted: 2006, following a Cabinet Committee on Economic Affairs (CCEA) decision of 27 October 2005 to create a single-window mechanism for appraising PPP proposals.
  • Reports to: Cabinet Committee on Economic Affairs (CCEA), for proposals above its own appraisal threshold.
  • Chair: Secretary, Department of Economic Affairs.

Genesis

  • Background: Before PPPAC, PPP proposals from different central ministries were appraised in an ad hoc manner, with no common standard for project structuring, risk allocation, or viability gap funding.
  • Formal creation: The CCEA's 27 October 2005 decision created PPPAC as the single-window body; it began functioning in 2006.

Composition

  • Chairperson: Secretary, Department of Economic Affairs.
  • Members: Secretary, NITI Aayog; Secretary, Department of Expenditure; Secretary, Department of Legal Affairs; and the Secretary of the ministry or department sponsoring the specific project.

Powers and Functions

  • Appraisal role: Examines Central Sector PPP proposals for their commercial and financial structuring, risk allocation, and consistency with PPP policy, before recommending them for approval.
  • Threshold: Proposals above a designated value threshold (currently ₹100 crore in most sectors) require its appraisal; higher-value or policy-sensitive proposals are referred onward to the CCEA for final approval.
  • Concession review: Reviews the draft concession agreement and bidding structure before a project is opened to private bidders.

Significance

  • Single-window appraisal: Removes the need for a PPP proposal to be separately vetted by multiple arms of government, shortening the time between conception and bidding.
  • Track record: Has appraised major PPP programmes across sectors, including the airport privatisation rounds — six airports in 2019, and a third round of eleven airports in five bundles cleared in August 2026.