Public-private partnership in building infrastructure in India has been both a blessing and a bother, according to the International Monetary Fund (IMF).
Through this partnership, huge public projects have been built over the past decade, such as highways and railway networks, with most of the actual work handled by private companies.
However, the IMF says because these firms typically look out for their bottom line, the partnership could sour if legal disputes arise.
Rajiv Lall heads a private company that manages money for some of India’s biggest infrastructure projects. He participated in a recent panel discussion on infrastructure investment at the IMF in Washington, DC.
Mark Bettencourt asked Mr Lall why governments would need private sector help in building public projects.