Professional Documents
Culture Documents
Ans : VGF: Viability Gap Funding means a grant one-time provided by the
Public Sector (Central Government / State Government) for Financial
Support to PPPs in Infrastructure, with the objective of making a project
commercially viable
Question : Does the government extend financial support for PPP projects
Question : Has the government provided any funds for the scheme
Ans : The government will provide a Viability Gap Funding (VGF) which
shall not exceed 20 per cent of the Total Project Cost; provided that the
Government or statutory entity that owns the project may, if it so decides it
will provide additional grants out of its budget, but not exceeding a further
20 per cent of the Total Project Cost. VGF under this scheme 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 with the approval of Finance
Minister on a case-to-case basis.
Question : What are the eligibility criteria for getting support under the
VGF scheme
Ans : The VGF is disbursed only after the private sector company has
subscribed and expended the equity contribution required for the project
and is released in proportion to debt disbursements remaining to be
disbursed thereafter.
Question : How is the grant-subsidy disbursed for the approved projects
Ans : A Grant under the VGF scheme is disbursed only after the Private
Sector Company has subscribed and expended the equity contribution
required for the project and is released in proportion to debt disbursements
remaining to be disbursed thereafter.
Ans : The need for providing long-term debt for financing infrastructure
projects that typically involve long gestation periods is imminent since debt
finance for such projects should be of a sufficient tenure that enables cost
recovery across the project life. Indian capital markets, however, are
deficient in long-term debt instruments. Therefore IIFC is set-up to bridge
this gap.
http://pppshipping.nic.in/MenuLinks/FAQ.aspx