The Viability Gap Funding (VGF) scheme was notified by the Ministry of Finance beneath which numerous infrastructure initiatives will probably be chosen for monetary assist to supply a lift to the sector. According to the VGF scheme, the Empowered Committee (EC) chaired by the financial affairs secretary will sanction a funding quantity of as much as Rs 200 crore, whereas initiatives requiring greater than Rs 200 crore could be permitted by the Empowered Committee, after the approval from the Minister of Finance. The VGF scheme will probably be referred to as the ‘Scheme for Financial Support to PPPs’ (Public-Private Partnerships) within the infrastructure sector.
This will probably be a central sector scheme and administered by the Finance Ministry. The up to date viability hole funding scheme will come into power with speedy impact, in keeping with notifications from the Ministry of Finance. Regarding the eligibility, the undertaking will be applied by a non-public sector firm to be chosen by the federal government or a statutory physique by an open aggressive bidding course of.
— Ministry of Finance (@FinMinIndia) December 11, 2020
For the social sector initiatives, together with water provide and stable waste administration, the viability hole fund quantity will be equal to the bottom bid for the grant of capital. This will probably be topic to a most of 30 per cent of the undertaking’s complete price. For the initiatives belonging to all different eligible sectors, the monetary assist quantity of the viability hole fund will probably be equal to the bottom bid for the grant of capital topic to a most of 20 per cent of the undertaking’s complete price.