QUESTION 11
GS3
15 marks
Explain the meaning of investment in an economy in terms of capital formation. Discuss the factors to be considered while designing a concession agreement between a public entity and a private entity.
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11 min
250 words
What the examiner wants
Explain investment as capital formation and discuss what to consider when designing a public–private concession agreement.
Explain + DiscussMake clear how and why it happens: causes, process, and an example for each point. Explain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1Investment: addition to capital stock (GFCF); difference from financial investment≈50 words
- 2Concession design: risk allocation, revenue model, tenure, tariffs, performance standards, dispute resolution, renegotiation, termination, independent regulator≈50 words
- 3Lessons from Kelkar Committee (2015)≈50 words
- 4Examples: airports, highways (HAM)≈50 words
Open in about 30 words and close in about 30.
Answer plan
MeaningConcession design factorsExamplesConclusion
Where marks usually go
- Only defining investment
- Generic PPP description without design factors
Draw this
- Risk allocation matrix: public vs private
Value addition
- ReportKelkar Committee (2015) on revisiting PPP recommended better risk sharing and an independent review mechanism.Kelkar Committee Report, 2015
- ModelHybrid Annuity Model (2016) for highways: government pays 40% during construction and the rest as annuities.NHAI
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Mayank Purohit · AIR 33 · Page 3 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 23 ↗Same syllabus reference
- Aniket Ranjan · AIR 48 · Page 26 ↗Same syllabus reference
- Mayank Purohit · AIR 33 · Page 13 ↗Same syllabus reference
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