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.