I would like to add on the issue of What Rajesh told in class.
in context with doing a BTO.to go about doing a BTO , Build-Transfer-Operate. Building a infrastructure by the private sector and transferring it to public sector and the operation through the same private sector.
one thing when the Govt.raises the tax during transfer , can hold good, instead of private players raising the tax and getting vast opposition.
Also giving the operations and maintenance to the same private sector will be more efficient, than giving to another private player who might complain about the standards of the infrastructure and quality issues. also such a move would ensure quality standards, or other wise when two players one for building and another for operation might subsidize the quality at the cost of other.
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On the one hand, the BTO can remove risks such as the tariff-risk that you mention. On the other hand, it might involve some cost and effort since it might have to be re-tendered, and bids will have to be evaluated. One option might be to have an integrated bid wherein a company submits a combined bid for building and operating - almost in the way Alandur went about their PPP
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