This article examines the public and private partnerships (PPPs) in investments in infrastructure of provision of public goods in India beset with institutional failures at several fronts. It draws insights from institutional (transaction costs) and information economics. The objective is to examine under what conditions PPPs succeed or fail. This article attempts to introduce (PPP) as a new form of governance structure that is efficient from the other structures in terms of contractual norms, transaction costs of uncertainty and asset specificity and information asymmetry through proper monitoring and incentive mechanism. Furthermore, we bring forth a few technological issues in applying transaction costs and information economics into the PPP model. We analyse the PPP model in the domain of ICT developmental projects carried out by the Indian government as e-governance.