Eligibility
1. In order
to be eligible for funding under this Scheme, a PPP project shall meet the
following criteria:
(a) The
project shall be implemented i.e. developed, financed, constructed, maintained
and operated for the Project Term by a Private Sector Company to be selected by
the Government or a statutory entity through a process of open competitive
bidding; provided that in case of railway projects that are not amenable to
operation by a Private Sector Company, the Empowered Committee may relax this
eligibility criterion.
(b) The PPP
Project should be from one of the following sectors:
(i) Roads and bridges, railways, seaports,
airports, inland waterways;
(ii)
Power;
(iii)
Urban transport, water supply, sewerage, solid waste management and other
physical infrastructure in urban areas;
(iv)
Infrastructure projects in Special Economic Zones; and
(v)
International convention centres and other tourism infrastructure projects;
Provided that the Empowered Committee may, with approval of the Finance
Minister, add or delete sectors/sub-sectors from the aforesaid list.
(c) The
project should provide a service against payment of a predetermined tariff or
user charge.
(d) The
concerned Government/statutory entity should certify, with reasons;
(i) that the tariff/user charge cannot be
increased to eliminate or reduce the viability gap of the PPP;
(ii) that the Project Term cannot be
increased for reducing the viability gap; and
(iii)
that the capital costs are reasonable and based on the standards and
specifications normally applicable to such projects and that the capital costs
cannot be further restricted for reducing the viability gap.
Quantum
of Assistance
The Scheme
for Financial Support to PPPs in Infrastructure (Viability Gap Funding scheme)
of the Government of India is administered by the Ministry of Finance and
provides financial support in the form of grants, one time or deferred, to
infrastructure projects undertaken through PPPs with a view to make them
commercially viable. The Government of India provides total Viability Gap
Funding up to twenty per cent of the total project cost, normally in the form
of a capital grant at the stage of project construction. The Government or
statutory entity that owns the project may, if it so decides, provide
additional grants out of its budget up to further twenty percent of the total
project cost.