This study was conducted to understand the various causalities and consequences of the hybrid structure and governance under public private partnerships (PPPs). Narrations pertaining to the central question of the research were collected from senior officials from PPPs in India, including executives from public agencies and private agencies. The grounded theory approach was used to analyze the narrations. Classical content analysis, selective coding and axial coding methods were used for data analysis.Complementary assets and capabilities among organizations, and inability to carry out project as a stand alone organization were the major casualties of the PPP structure. There were two dimensions of governance complexity, i.e. (i) Uninterpretable rules, policies, systems, and (ii) unexpected actions/decisions in uncertainty, in the PPP structure. The causalities in the complexity of the governance of the hybrid PPP structure were (i) organizational attributes, (ii) stakeholders’ expectations, (iii) power of control, (iv) institutional logic, (v) strategic decision making, and (vi) contract management. The attributes to the complex PPP governance system were, trust, ego, interpretation of complex operational phenomenon, mechanism to address risks and uncertainty and Interdependencies and reciprocity.