Investment Models

The government of India set up the Planning Commission in 1950 which was assigned the resources of the country and thus formulates a plan.
The three major strategies that have been adopted in India since the beginning of the Second Plan are:-

1. Nehru - Mahalanobis Model of Growth

A heavy industry model based on the Soviet experience under the guidance of Prime Minister and Prof. P.C. Mahalanobis was developed which continued to be the principal strategy till 1977.
The chief features of the heavy industry model were:-
It emphasized the rapid development of heavy industry with the aim of creating an industrial base of the economy as also to make it more self reliant into arms father capital goods sector.

2. Gandhian Model of Growth

The Gandhian Model did recognise the need for the development of heavy and basic industries and assigned this role for the public sector.
Gandhian Model intended to tackle the problem of distribution of income at the production end and not at the level of consumption of fiscal measures.
It did emphasize employment as the principal means of providing national minimum and removal of poverty.

3. Rao Manmohan Model of Growth

Introduced in 1991, it emphasized privatisation and globalisation of the economy. Areas reserved for the public sector were opened for the private sector for both domestic and international markets. Government also removed bureaucratic shackles on investment.
Even big business, was allowed to invest without any ceiling being prescribed by the Monopoly and Restrictive Trade Practices (MRTP) Commission.
Automatic approvals for direct foreign investment was facilitated and upto 51% in high priority areas were granted. Memorandum of Understanding ( MOU ) was devised and PSUs management's and boards were made more professional. Reduction in import barriers and encouragement in export promotion were established.

Models of Public Private Partnership

The models of PPP operate on different conditions on the private sector regarding level of investment, ownership control, risk sharing, technical collaboration, duration of the project, financing etc..
Following are the models of PPPs

(A) Build Operate and Transfer (BOT):
Here the private partner is responsible to design, build, operate and transfer back the facility to the public sector. Role of the private sector partner is to bring the finances and take the responsibility of construction and maintenance. In return, the public sector will allow it to collect revenues from the users.
Example:- The National Highway Projects contracted out by NHAI .

(B) Build - Own - Operate ( BOO ) :
It is just like BOT but here the ownership of the newly built facility will rest with the private party.

(C) Build - Own - Operate - Transfer ( BOOT ):
After the negotiated period of time, the infrastructure asset is transferred to the government or  to the private party. This approach has been used for developing highways and ports.

(D) Build Operate Lease Transfer ( BOLT ) :
Here the government gives concession to a private entity to build a facility, own the facility, lease the facility to the public sector and then at the end of the lease agreement transfer the ownership of the facility to the government.

(E) Lease Develop Operate ( LDO ) :
Here the government or the public sector entity retains ownership of the newly created infrastructure facility and receives payment in term of a lease agreement with the private promoter. Example : Airport

(F) Rehabilitate Operate Transfer (ROT) :
Here private promoter is allowed to rehabilitate and operate a facility during a concession period. After the concession period, the project is transferred back to government.

(G) Design, Build, Finance and Operate ( DBFO ) :
The private party assume the entire responsibility for the design, construction, finance, and operate the project for the period of concession.

A mature PPP framework, along with a robust enabling ecosystem shall enable the government to accomplish its functionaries.