Question

The Government of India gave a contract to a private company to construct a highway. After the construction, the company collected tolls from the passengers for 10 years. The company then transferred the ownership of the highway to the government.

Which way of privatisation is adopted by the government in the above example?

• A. Joint venture
• B. Selling ownership
• C. Public-private partnership
• D. Build, operate, and transfer

Answer 1

The correct option is D Build, operate, and transfer

Build, operate, and transfer or BOT is an arrangement between the government and a private sector company where the private sector builds and operates a project to recover the cost of building the project. After a certain period, it generates profits and transfers the ownership back to the government. Some other ways of privatisation are public-private partnership and selling of ownership to private players.