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The paper explores public-private partnership in the light of persistent state failure, institutional constraints, and systemic weakness, which impede the service delivery. The paper focus is on key issues: whether public-private partnership facilitate innovation, and thereby enhance quality services, and essentially propoor reflecting equity concerns. The study examines various types of partnership at work for service delivery in metropolitan Bangalore. The paper is presented in five sections. The first section presents conceptual understanding of PPP in urban context while second section explores empirical evidence of PPP models in Bangalore. The third section deals with outcomes in terms of Efficiency and Equity issues. Final section presents policy prescription.