|
|
This site provides detail information on Ministry of Infrastructure. The site also focuses on the objectives and activities of Ministry of Infrastructure Government of India.
Grey areas identified by Ministry of Infrastructure -
The Government of India recognizes the deficiency in the availability of physical infrastructure across different sectors and that this is hindering economic development.
The development of infrastructure requires large investments that cannot be undertaken out of public financing alone, and that it must attract private capital as well as the techno-managerial efficiencies associated with it for promoting Public Private Partnerships (PPPs) in infrastructure development.
The Government of India recognizes that infrastructure projects may not always be financially viable because of long gestation periods and limited financial returns, and that financial viability of such projects can be improved through Government support.
The Government of India has decided to put into effect some attractive schemes for providing financial support to bridge the viability gap of infrastructure projects undertaken through Public Private Partnerships.
Steps taken by Ministry of Infrastructure are -
The total Viability Gap Funding shall not exceed 20% of the Total Project Cost; provided that the Government or statutory entity that owns the project may, if it so decides, provide additional grants out of its budget, but not exceeding a further 20% of the Total Project Cost.
Viability Gap Funding will normally be in the form of a capital grant at the stage of project construction. Proposals for any other form of assistance may be considered by the Empowered Committee and sanctioned accordingly.
Viability Gap Funding up to Rs. 100 crore for each project may be sanctioned subject to the budgetary stipulations. Proposals up to Rs. 200 crore may be sanctioned by the Empowered Committee, and amounts exceeding Rs. 200 crore may be sanctioned by the Empowered Committee with the approval of Finance Minister.
Unless otherwise directed by the Ministry of Finance, the Empowered Institutions may approve project proposals with a cumulative capital outlay equivalent to 10 times the budget provisions in the respective Annual Plan.
In the first 2 years of operation of the projects meeting the eligibility criteria will be funded on a first-come, first served basis. In later years, if need arises, funding may be provided based on an appropriate formula that balances needs across sectors in a manner that would make broad base sectoral coverage and would nullify early exhaustion of funds by a few large projects under the Ministry of Infrastructure.
|
|
|
|
