ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sensitivity of Traffic Demand to Fare Rationalisation

The Airport Metro Express Line and the implications of rationalisation of the price on its traffic and revenue are examined. The amel was incurring huge operational losses when the Delhi Metro Rail Corporation took over its operations, and was faced with the challenge of reviving it and making it operationally viable. The role played by price rationalisation to enhance capacity utilisation and revenue, which contributed to improving the amel’s “operating ratio,” is analysed. The strategy worked, and by April 2016 the amel was able to break even. This is an example of how a well-thought-out pricing strategy could improve the viability of a public utility.

The Increasing Incidence of PPP Project Cancellations in India

A spurt in the cancellation of public-private partnership projects in recent times can be attributted to macroeconomic crises, inherent problems in the water sector projects, and foreign sponsorship of these projects. Since giving the renegotiation relief to many of these projects seems to be problematic, cancellation is probably the only way for the government to elicit more realistic bidding from the private sector.

Strategic Sale versus Public Offer: Dispelling Myths

The focus in India's privatisation efforts has shifted from disinvestment, the sale of minority shares to the public, to strategic sale where a controlling stake is sold to a private buyer. It is contended that strategic sale, by transferring control from government to a private owner, is best suited to the objective of improved efficiency. Because a process of bidding subject to a reserve price is involved, it will also help meet the objective of maximising government revenues through privatisation. This paper reviews these claims drawing on the findings of auction theory and the empirical evidence on methods of sale in privatisation worldwide. It also addresses popular misconceptions about the benefits of strategic sale. The auction literature suggests that strategic sale using the first-priced sealed-bid method currently employed cannot always be counted upon to maximise efficiency and revenues. The empirical evidence shows that share issue privatisation, the sale of government shares through a public offer, has been the preferred method of sale in privatisation carried out elsewhere.

Public-Private Partnership in Local Self-Governance

The near-breakdown of public services in the metropolitan and other urban areas in India and the inability of the municipalities in providing satisfactory level of services is leading to the redrawing of the trajectory of public goods provision and its management in recent years. A case in point is the experiment undertaken by the Kolkata Municipal Corporation in its largest wholesale fruit market Falpatti, to involve the private sector in market waste management.
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