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 ` 100 crore for each project may be sanctioned subject to the budgetary stipulations. Proposals up to ` 200 crore may be sanctioned by the Empowered Committee, and amounts exceeding ` 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.
is expected to grow at rates above eight per cent in the 11th plan," he told participants of the conference, adding that unless investment grows at the same pace, it would not be possible to sustain the pace of economic growth.
deficiency is visible because of high growth," he said. The country, he added, can absorb as much as $150 billion in direct investment from overseas to upgrade its roads, ports, power plants
Chidambaram said the rapid pace of economic growth
has exposed the infrastructure
deficiencies in the country. It is particularly obvious in congested highways, ports
had long been in the domain of public sector, which resulted in inadequate development. Hence, there was a need for private participation in the sector. He said the country needed investments to the tune of `
1,100,000 crore for infrastructure development
in the Tenth Plan
alone while it would require `
2,200,000 crore for investments in national highways, airports
by the year 2012.
Last updated On: 7th May 2011