DEA Notifies Financial Support Scheme for Project Development Expenses of PPP Projects – ‘IIPDF Scheme’
NEW DELHI: The Department of Economic Affairs (DEA), Ministry of Finance, Government of Indianotify Financial Support Scheme for Project Development Expenses of PPP Projects – Infrastructure Project Development Fund Scheme in India (Scheme IIPDF) on 03.11.2022.
The DEA focuses on improving the quality and pace of infrastructure development in the country by encouraging private sector participation in the infrastructure sector. The DEA has been actively engaged in developing an appropriate policy framework for private investment in infrastructure development. Public-private partnerships (PPP) are encouraged to bring private capital and efficiency in the execution and operation of infrastructure projects. In addition, new programs and initiatives are being introduced to provide financial and technical support to the private sector, whenever needed.
Now, IFS, DEA has released a financial support scheme for project development expenses of PPP projects – ‘IIPDF Scheme’ (India Infrastructure Project Development Fund Scheme) to provide necessary support to PSAs, both in central and state governments, providing financial assistance to cover the cost of transaction advisers and consultants engaged in the development of PPP projects.
As a central sector scheme, the India Infrastructure Project Development Fund Scheme (IIPDF Scheme) will assist in the development of quality PPP projects by providing the necessary financial support to the project sponsoring authorities, both at the central and government levels. States, to create a shelf of viable and bankable projects. PPP projects to realize the vision of modern infrastructure for the country. The funding under the IIPDF scheme is in addition to the already operational program of financial support for PPPs in infrastructure (VGF Scheme) notified on 07.12.2020, whereby infrastructure projects undertaken in PPP mode which are economically justified but commercially non-viable are supported. The program and guidelines are available at www.pppinindia.gov.in .
The Infrastructure Finance Secretariat (IFS), DEA, has undertaken several in-depth initiatives to boost the PPP ecosystem in the country, spanning the full spectrum of the PPP life cycle. A key step in structuring quality PPP projects is to provide quality advisory/consultancy services to Project Sponsoring Authorities (PSAs). However, procuring such services is a long and difficult process, which often leads to delays in onboarding the right transaction advisors (TAs) or suboptimal structuring of PPP projects.
To address these issues, the Department of Economic Affairs notified a panel of pre-qualified TAs on 01.07.2022 and developed a user manual for this component.