Read the given below two statements and mark the correct answer.

Assertion (A): Public-Private Partnership is the involvement of private sector in the government projects aimed at public benefit.
Reason (R) : Sectors in which PPPs have been completed worldwide include power generation and distribution, water and sanitation, pipelines, hospitals etc.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

The correct answer is option 2- Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A): Public-Private Partnership is the involvement of private sector in the government projects aimed at public benefit. This statement is correct as it define the PPP model.
Reason (R) : Sectors in which PPPs have been completed worldwide include power generation and distribution, water and sanitation, pipelines, hospitals etc. This statement is correct as it shows the sector in which PPP model has worked.

Although both statements are true, but there is no relation between two. Assertion explains the PPP model whereas Reason explains the sector of PPP. Reason does not explain why assertion is true. So, correct answer is option 2.

** The Public Private Partnership model allocates tasks, obligations and risks among the public and private partners in an optimal manner. The public partners in PPP are Government entities, i.e., ministries, government departments, municipalities or state-owned enterprises. The private partners can be local or foreign (international) and include businesses or investors with technical or financial expertise relevant to the project. PPP is, therefore, defined as a relationship between public and private entities in the context of infrastructure and other services. Under the PPP model, public sector plays an important role and ensures that the social obligations are fulfilled and sector reforms and public investment are successfully met. The government’s contribution to PPP is in the form of capital for investment and transfer of assets that support the partnership in addition to social responsibility, environmental awareness and local knowledge. The private sector’s role in the partnership is to make use of its expertise in operations, managing tasks and innovation to run the business efficiently. Sectors in which PPPs have been completed worldwide include power generation and distribution, water, and sanitation, refuse disposal, pipelines, hospitals, school buildings and teaching facilities, stadiums, air traffic control, prisons, railways, roads, billing and other information technology systems, and housing.