Home » Viability Gap Funding to support infrastructure projects worth Rs 2,750 crore

Viability Gap Funding to support infrastructure projects worth Rs 2,750 crore

Viability Gap Funding to support infrastructure projects worth Rs 2,750 crore

Viability Gap Funding, which has been provided a budgetary support of Rs 550 crore, will support projects worth Rs 2,750 crore towards infrastructure building in 2017-18. VGF was Rs 1,000 for the current fiscal.

The Output-Outcome Framework for Schemes 2017-18 said that the projected medium term outcome of the scheme is to support infrastructure projects that are economically justified, but fall short of financial viability.

VGF is a one-time grant provided by the public sector for financial support to PPPs in infrastructure, with the objective of making a project commercially viable.

This will also lead to increased private sector participation in developing infrastructure in the country through Public-Private-Participation mode.

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