With mobilisation of private capital becoming tough, India is looking for funding from the international financial institutions for bridging the gap in key infrastructure projects.
"The change in the international financial environment does present problems in mobilising some of the private investment which we had hoped would flow in these sectors (infrastructure)," Prime Minister Manmohan Singh said in an interview to the UK daily The Financial Times.
On the funding gap for infrastructure development, estimated to be $190 billion, Singh said the government was relying on a combination of public investment and public-private-partnership for financing the mega projects.
"This is an area where IFI (international financial institutions) funding can play a crucial bridging role for the next two years," he said.
Before leaving for the G-20 Summit, Singh in New Delhi on Tuesday said that there are some issues, such as the need to ensure adequate flow of finances to the developing countries to overcome the reversal of international capital flows, which require particular focus.
He said the government was taking steps to increase bank lending for the infrastructure projects.
"Recongnising that the global financial crisis may present short-term financing problems, we are taking steps to increase public investment in infrastructrue. . ." he said.