New Public Management through Public Private Partnership - Case Study of Emergency Management Research Institute

Academic Associates – IIM AhmedabadAcademic Associates – IIM Ahmedabad
KALPESHKUMAR GUPTAKALPESHKUMAR GUPTA
AKHILESH SHUKLAAKHILESH SHUKLA
National Seminar onNational Seminar on
Interdisciplinary ApproachesInterdisciplinary Approaches
to Knowledge,to Knowledge,

(C) K L GUPTA(C) K L GUPTA
Outline of the presentation
1.Introduction
2.New Public Management
3.Public Private Partnership
4.EMRI
5.Conclusion
6.Video on EMRI
7.Q & A

Present paper will discuss concept of New Public
Management, Public Private Partnership.
It will focus on how public private partnership
helps to nurture New Public Management.
We have taken Emergency Management &
Research Institute (EMRI) as a part of our case
study. GVK EMRI is a pioneer in Emergency
Management Services in India. As a not-for-
profit professional organization operating in the
PPP mode, GVK EMRI is the Largest professional
Emergency Service Provider in India today.
Preface of the paper

Present research paper is based on field visit as
well as secondary data in form of
- Published books
- Journal Articles
- Websites
- Written reports
- Newspaper clips
- Administrative documents etc.
Research Methodology

New public management (NPM), a term first
referred to by Hood (1991) denotes broadly
the government policies
…….that aimed to modernize and render more
effective the public sector.
New Public Management

Mongkol (2011) has defined NPM as “a set of
particular management approaches and
techniques which are mainly borrowed from
the private sector and applied in the public
sector”.
NPM is not a precise set of guidelines or a
standard package that should be followed
entirely;
instead, it is a combination of approaches
and techniques that could be applied
collectively or partially according to each
country’s situation and needs
New Public Management

Characteristics of New Public Management – by
Organization for Economic Co-operation &
Development (OECD,2003)
-Decentralization
-Management by objectives
-Contracting out
-Competition within government
-Consumer orientation

The most common official explanations for
adopting the NPM model are the…
- Weakness or failures of traditional state
bureaucracy especially in terms of its
monopolistic nature
- Unmanageable size
- Managerial inefficiency
- Public inaccessibility
- Economic inertia
- Excessive corruption and self-service agenda.
Rationales behind adoption of NPM
Cont. .

In both developed and developing countries, the
tarnished image of the public service was
reinforced further as most governments began to
hold the expansive public sector responsible for
causing budget deficits and fiscal crisis and
introduced market-driven policies and structural
reforms in line with the NPM model.
Various forms of fiscal crisis, allegedly caused by
an inefficient public bureaucracy, have been used
as one of the most oft-cited rationales for
adopting NPM as a more efficient model of
governance.
(M Sahmshul Haque)
Cont. .

It is also believed that NPM was introduced due to
increasing world demand for “good governance”
as well as the changing role of the state.
NPM aims at avoiding the criticism directed
towards traditional public administration through
improving service delivery and efficiency, and
applying accountability.
NPM strongly supports the involvement of the
private sector and Non-Governmental Organization
(NGOs) in the delivery of services, unlike
traditional public administration that used to
burden the government with implementing too
many activities at the same time without any
involvement of the private sector or NGOs.
Cont. .
New Public Management (Sharma, 2007)

Many characteristics are associated with NPM,
such as
- de-bureaucratization,
- the wide use of the private sector,
- the implementation of Public-Private Sector –
Partnership schemes,
- enhancing the provision of services through
outsourcing, and
- the use of information and communication
technology
(Sharma, 2007)
Cont. .

Definition of PPP by Ministry of Finance
The Scheme and Guidelines for the India
Infrastructure Project Development Fund, issued
by Ministry of Finance, Government of India
define PPPs as- Partnership between
a public sector entity (Sponsoring authority) and
a private sector entity (a legal entity in which
51% or more of equity is with the private
partner/s)
….for the creation and/or management of
infrastructure for public purpose for a specified
period of time (concession period) on commercial
terms and in which the private partner has been
procured through a transparent and open
procurement system.

Definition of PPP by GIBD Act, 1999
The Gujarat Infrastructure Board Development Act
covers within its purview contracts in the nature
of concessions.
Accordingly it defines concessions….
to mean means grant of financial assistance
or conferment of right on Government
property and public assets to a person………
other than the State Government,
Government agency or specified Government
agency, as per the terms specified in the
concession agreement.

Definition of PPP by OECD
Organization for Economic Co-operation &
Development (OECD) defines a public-private
partnership as an agreement between
the government and
one or more private partners (which may include
the operators and the financiers)
according to which the private partners deliver
the service in such a manner that the service
delivery objectives of the government are aligned
with the profit objectives of the private partners
and where the effectiveness of the alignment
depends on a sufficient transfer of risk to the
private partners.

Why we need PPPs?
Development of infrastructure and provision of
basis civic services has always been considered a
very important public sector activity for the
following reasons:
a. Governments have recognized the crucial role
of infrastructure in fostering economic growth and
reducing poverty.
b. Because of its ‘public good’ and ‘essential’
nature, Governments have attempted to ensure
availability of basic civic services irrespective of
market conditions.
c. For a number of economic, social and political
reasons, private sector involvement in these
important areas was slow to develop and thus
uneven.

Definition of PPP by IMF
According to International Monetary Fund (IMF 2006: 1
and 2004: 4) public-private partnerships (PPPs) refer to
arrangements where the private sector supplies
infrastructure assets and services that traditionally
have been provided by the government.
In addition to private execution and financing of public
investment, PPPs have two other important
characteristics: there is an emphasis on service
provision, as well as investment, by the private sector;
and significant risk is transferred from the government
to the private sector.
PPPs are involved in a wide range of social and
economic infrastructure projects, but they are mainly
used to build and operate hospitals, schools, prisons,
roads, bridges and tunnels, light rail networks, air
traffic control systems, and water and sanitation plants.

Reasons to go for PPPs?
PPP

GVK Emergency Management and Research
Institute (EMRI)
GVK EMRI is a pioneer in Emergency Management Services
in India. As a not - for - profit professional organization
started in year 2005 operating in the Public
Private Partnership (PPP) mode, GVK EMRI is the Largest
professional Emergency Service Provider in India today.
GVK EMRI handles medical, police and fire emergencies
through the "1-0-8 Emergency service". This is a free
service delivered through state-of-art emergency call
response centres and has over 4535 ambulances across the
India.
With a vision is to respond to 30 million emergencies and
save 1 million lives annually, GVK EMRI is set to expand
fleet and services set to spread across more states.

Dr. GVK Reddy is the Founder Chairman & Managing
Director of GVK, a diversified business conglomerate
within interests across energy, resources, airports,
transportation, hospitality and life sciences sectors.
He has been recognized for his dynamism, outstanding
brilliance and invaluable contribution to the field of
entrepreneurship and social upliftment.
He was conferred with one of the highest civilian honours’
of Padma Bhushan by the Government of India in 2011 and
has been bestowed with the honorary title, “Doctor of
Philosophy” by the renowned Jawaharlal Nehru
Technological University, India.

SENSE
Communication
Officer collects
the facts
Dispatch Officer
scopes
emergency &
assign
strategically
located vehicle
(Ambulance/Pol
ice/Fire)
REACH
Vehicle
reaches the
site
CARE
EMT provides
pre-hospital
care while
transporting
patient/victim
to appropriate
hospital
Process
Cont..

Cont.. 99% of the calls are picked up at first ring99% of the calls are picked up at first ring

No States Ambulances
1 Andhra Pradesh 802
2 Gujarat 525
3 Uttarakhand 140
4 Goa 33
5 Tamil Nadu 606
6 Karnataka 517
7 Assam 285
8 Meghalaya 46
9 Madhya Pradesh 229
10 Himachal Pradesh 112
11 Chhatisgarh 239
12 Uttar Pradesh 988
13 Dadra Nagar Haveli & Diu Daman 13
Accessibility of GVK EMRI-108 in India
4535

Emergency Medicine Learning & Care (EMLC)
1.Paramedic Training
2.First Responder Training Programme
3.General Practitioners’ Training
4.Emergency Room physician training

108 better than US’s 911
GVK Emergency Medical Research Institute (EMRI)-
led 108 emergency service is fast emerging as a
leading organization in emergency health sector
worldwide owing to its cost-effective method and
public- private partnership model.
108 services has outpaced the US’ 911 service with
its huge expansion model and innovation.
EMRI spent only 50 cents per person treated to
build the infrastructure in India, compared to
$100 in the US.
The expense per ambulance visit is less than
$15, vis-a-vis $600 to $800 in the US.

108 helped over 4 lakh women in Gujarat last year
(Times of India March 9, 2013)
The 108 emergency services in Gujarat, paying
tributes on the occasion of the International
Women's Day, on March 8, called themselves the
'true friend of women in Gujarat' and said they had
helped over 4 lakh women in the state, by providing
them emergency services last year.
Releasing data to the media, GVK EMRI said 57% of
the cases attended by 108 services were of female
victims, out of which 79% hailed from tribal or rural
areas of Gujarat. The employees wore 'I am a proud
woman life saviour' badge on March 8 and went
visiting government hospitals and orphanages to
greet women inmates, a spokesman said.
Source :- http://timesofindia.indiatimes.com/city/vadodara/108-helped-over-4-lakh-women-in-
Gujarat-last-year/articleshow/18880813.cms accessed on April 2, 2013

Angels in ambulances honoured for selfless service
(Times of India January 9, 2013)
MADURAI: They work under enormous pressure,
navigating through dense traffic snarls while
administering life-saving procedures to the accident
victims in their battle to survive. Through their timely
action and speed, they save hundreds of lives that
could otherwise be lost.
They are the pilots and staff of the 108 ambulance
services, who were honoured on Tuesday during the
National Ambulance Day organised by GVK EMRI.
Source :- http://timesofindia.indiatimes.com/city/madurai/Angels-in-ambulances-honoured-for-
selfless-service/articleshow/17948069.cms accessed on April 2, 2013
Cont. .

37 staff members of 108 ambulance service from 12
southern districts coming under Madurai district
were distributed with certificates and prizes.
They were selected on the parameters including
- highest number of cases attended
- efficient documentation of the care
- best maintenance of the instruments and the
vehicles
said G Thanigaivel Murugan, Madurai district
manager, GVK EMRI.
Source :- http://timesofindia.indiatimes.com/city/madurai/Angels-in-ambulances-honoured-for-
selfless-service/articleshow/17948069.cms accessed on April 2, 2013
Cont. .

Visiit of EMRI Centre AhmedabadVisiit of EMRI Centre Ahmedabad

Gujarat
GVK Emergency Management and
Research Institute,
Gujarat "Emergency Response Center",
Naroda - Kathwada Road, Naroda,
Ahmedabad -382345,
Gujarat, India.
http://www.emri.in

Public Private Partnership need of
the hour
- PPP is need of the hour for NPM
- EMRI is a very good example of New
Public Management through PPP mode.
- Main challenges before NPM is ineffective
tendering process and corruption which
can hinder progress of NPM concept.

Mangkol, K. (2011). “The Critical Review of New Public Management Model and
its Criticisms” Research Journal of Business Management 5: 35-43.
Sharma, C. K. (2007) New public management challenges and constrains.
Botswana: University of Botswana.
McCourt, W., and Minogue, M. (2001) The Internationalization of Public
Management: Reinventing the Third World State. Cheltenham: Edward Elgar.
McLaughlin, K., Osborne, P. S., and Ferlie, E. (2002) New public management:
current trends and future prospects. London: Routledge
Approach paper on Defining Public Private Partnership, Ministry of Finance,
Department of Economic Affairs, Govt. of India, February 2010
Managing Decentralisation: A New Role for Labour Market Policy, Organization
for Economic Co-operation and Development, Local Economic and Employment
Development (Program), OECD Publishing, 2003, p 135, ISBN 9264104704,
9789264104709
Hood, C. (1991). A Public Management for All Seasons. Public Administration,
69 (Spring), 3-19.
www.emri.in
References :-

Kalpeshkumar Gupta - Akhilesh Shukla
klgupta@iimahd.ernet.in
(c) K L Gupta

New Public Management through Public Private Partnership - Case Study of Emergency Management Research Institute

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