New Delhi: The Cabinet Committee on Economic Affairs has approved continuation and revamping of the scheme for financial support to public-private partnerships (PPPs) in infrastructure VGF scheme till 2024-25, Information and Broadcasting Minister Prakash Javadekar told reporters here.
The revamped scheme will provide financial support to PPP projects in the infrastructure sector spread over a period of five years ending 2024-25.
Of the total amount of Rs 8,100 crore, Rs 6,000 crore has been earmarked for PPP projects in the economic infrastructure segment and remaining Rs 2,100 crore for social infrastructure projects, said an official release after the Cabinet meeting.
The earlier VGF scheme was limited to projects concerning economic infrastructure.
The revamped VGF scheme will attract more PPP projects and facilitate private investment in the social sectors (health, education, waste water, solid waste management and water supply, among others).
Creation of new hospitals and schools will create many opportunities to boost employment generation, according to an official release.
The new scheme will have two components. The sub-scheme-1 would cater to social sectors such as waste water treatment, water supply, solid waste management, health and education sectors, which often face bankability issues on account of poor revenue streams.
The projects eligible under the sub-scheme-1 should have at least 100 per cent operational cost recovery.
