The Cabinet Committee on Economic Affairs (CCEA) chaired by the Indian PM on Wednesday approved the continuation and revamping of the scheme for financial support to Public-Private Partnerships (PPPs) in Infrastructure Viability Gap Funding (VGF) Scheme till 2024-25 with a total amount of Rs. 8,100 crore. The social sectors including waste water treatment, water supply, solid waste management, health and education sectors etc will be benefited. The bankability issues and poor revenue streams to cater fully to capital costs. The projects eligible under this category should have at least 100% operational cost recovery, CCEA said in a statement. 

The Centre will provide a maximum of 30% of total project cost (TPC) of the project as VGF while state government, sponsoring central ministry or statutory entity may provide additional support up to 30% of TPC. This sub-scheme will support pilot social sectors projects, CCEA added. The projects from health and education sectors with at least 50% operational cost recovery are in sub-scheme list. The central and the state governments together will provide up to 80% of capital expenditure and upto 50% of operation & maintenance (O&M) costs for the first five years, it added. The Centre will provide a maximum of 40% of the TPC of the Project. The centre may provide a maximum of 25% of Operational Costs of the project in first five years of commercial operations. 

Right from the beginning, 64 projects were given 'final approval' and the total Project Cost of Rs. 34,228 crore and VGF of Rs. 5,639 crore. Till the end of Financial Year 2019-20, VGF of Rs. 4,375 crore has been disbursed. The main aim is to promote PPPs in social and Economic Infrastructure leading to efficient creation of assets and ensuring their proper Operation and Maintenance and make the economically/socially essential projects commercially viable. The scheme would help in creation of the Infrastructure for the country thus helping the general public. 

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