The finance ministry has notified the Viability Gap Funding (VGF) scheme under which infrastructure projects would be selected for financial support to give a push to the sector.
As per the scheme notified by the ministry, funding up to Rs 200 crore will be sanctioned by the Empowered Committee (EC) headed by the economic affairs secretary, while projects needing over Rs 200 crore would be approved by the EC with the approval of the finance minister.
Members of the EC include NITI Aayog CEO, expenditure secretary, secretary of the line ministry dealing with the subject and joint secretary in the Department of Economic Affairs as member secretary, the notification said.
The scheme, titled, Scheme for Financial Support to Public Private Partnerships (PPPs) in infrastructure, will be a central sector scheme administered by the finance ministry.
According to the report, this VGF scheme will be known as the Scheme for Financial Support to PPPs (Public Private Partnerships) in the infrastructure sector. This scheme will be a central sector scheme to be administered by the Finance Ministry. The report further said the VGF scheme shall come into force with immediate effect.
