India Infrastructure Project Development Fund Scheme (IIPDF) was notified by the Indian Government on November 3, 2022.
About India Infrastructure Project Development Fund Scheme (IIPDF)
- The India Infrastructure Project Development Fund Scheme (IIPDF) was launched by the Department of Economic Affairs (DEA).
- This central sector scheme extends financial aid required for the development expenses of Public Private Partnership (PPP) projects.
- It provides funding for project sponsoring authorities (both in the central and state governments) to access services provided by Transaction Advisors (TAs) and consultants involved in the development of the PPP projects.
- This will help effectively implement bankable viable PPP projects that seek to modernize infrastructure in India.
- The total corpus of the India Infrastructure Project Development Fund is 150 crore for three years.
- The new scheme is an addition to the currently operational Scheme for Financial Support to PPPs in Infrastructure (VGF Scheme), which was notified in December 2020.
About VGF Scheme
The Scheme for Financial Support to Public Private Partnerships (PPPs) in Infrastructure Viability Gap Funding (VGF) was launched by the Department of Economic Affairs in 2006 to provide funding for PPP infrastructure projects that are economically justified but not commercially viable because of large capital requirements.
The Viable Gap Funding (VGF) of 40 per cent of the Total Project Cost (TPC) is provided by the Indian Government and the sponsoring authority in the form of capital grant at the construction stage of the project.
Panel of Transaction Advisers (TAs)
Project Sponsoring Authorities’ access to high-quality consultancy or advisory services is an important step in structuring quality Public Private Partnership (PPP) projects. However, obtaining such services is time consuming and a difficult process. This results in delays in the on-boarding of the appropriate Transaction Advisers (TAs) or non-optimal structuring of PPP projects.
To address this issue, a panel of pre-qualified TAs was set up in July 2022. A manual was also developed to be used by this panel. The panel will provide required aid for project sponsoring authorities in transition of PPP projects. It helps make the process of appointment of transaction advisors or consultants more effective.