The Public-Private Partnership Appraisal Committee (PPPAC) is an institutional body and the apex mechanism for the appraisal of Central Sector Public-Private Partnership (PPP) projects in India. It was established to streamline the appraisal and approval process, eliminate delays, and ensure uniformity in the mechanism for Central Sector PPP projects. The procedure for its establishment was approved by the Cabinet Committee on Economic Affairs (CCEA) on October 27, 2005, and the PPPAC was formally notified in 2006.
The PPPAC's core function is to appraise Central Sector PPP projects with a capital cost or underlying asset value of Rs. 250 crore or more. Projects with a value between Rs. 100 crore and Rs. 250 crore are appraised by a smaller committee comprising the Secretary of the Department of Economic Affairs and the Secretary of the sponsoring Ministry/Department. The PPPAC is chaired by the Secretary, Department of Economic Affairs (DEA), and its members include the Secretary, Department of Expenditure, the Secretary, Department of Legal Affairs, the CEO of NITI Aayog (formerly Secretary, Planning Commission), and the Secretary of the Department sponsoring the project.
The mechanism requires the Administrative Ministry to seek 'in principle' clearance from the PPPAC before proceeding with the project. However, 'in principle' clearance by the PPPAC is not necessary for projects based on a duly approved Model Concession Agreement (MCA). In such cases, the PPPAC's approval is obtained only before inviting the technical and financial bids. The PPPAC also provides final clearance on the Concession Agreement, which is the core legal instrument defining the risk allocation and obligations between the government and the private entity.
The PPPAC connects to the Department of Economic Affairs (DEA), Ministry of Finance, which houses the PPP Unit that serves as the PPPAC Secretariat. It is closely linked to the Viability Gap Funding (VGF) Scheme, which provides financial support to make certain PPP projects commercially viable. A recent change occurred in 2023 when the name of the PPP cell within the Finance Ministry was changed to the Private Investment Unit. The PPPAC itself, however, continues to function as the apex appraisal body.