Scheme for Financial Support for Project Development Expenses of PPP Projects – ‘IIPDF Scheme’ (India Infrastructure Project Development Fund Scheme) Notified on 03.11.2022
The Department of Economic Affairs (DEA), Ministry of Finance, Government of India, notifies Scheme for Financial Support for Project Development Expenses of PPP Projects – India Infrastructure Project Development Fund Scheme (IIPDF Scheme) on 03.11.2022.
DEA is laying great thrust 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 the appropriate policy framework for private investment in infrastructure development. Public Private Partnerships (PPPs) are being encouraged to bring private capital and efficiency in execution and operation of infrastructure projects. Besides, new schemes and initiatives are being introduced to provide financial and technical support to the private sector, wherever necessary.
Now, the IFS, DEA has come out with Scheme for Financial Support for Project Development Expenses of PPP Projects – ‘IIPDF Scheme’ (India Infrastructure Project Development Fund Scheme) for providing necessary support to the PSAs, both in the Central and State Governments, by extending financial assistance in meeting the cost of transaction advisors and consultants engaged in the development of PPP projects.
As a Central Sector Scheme, the India Infrastructure Project Development Fund Scheme (IIPDF Scheme) will aid development of quality PPP projects by providing necessary funding support to the project sponsoring authorities, both in the Central and State Governments, for creating a shelf of bankable viable PPP projects for achieving the vision of modern infrastructure for the country. Funding under IIPDF Scheme is in addition to the already operational Scheme for Financial Support to PPPs in Infrastructure (VGF Scheme) notified on 07.12.2020, through which infrastructure projects undertaken through PPP mode that are economically justified but commercially unviable are supported. Scheme and Guidelines are available on www.pppinindia.gov.in .
The Infrastructure Finance Secretariat (IFS), DEA, has undertaken several deep dive initiatives for boosting PPP ecosystem in the country covering the entire gamut of PPP Life-cycle. A key step in structuring quality PPP projects is to provide quality advisory/ consultancy services to the Project Sponsoring Authorities (PSAs). However, procurement of such services is a time consuming and difficult process often resulting into delays in onboarding of the appropriate Transaction Advisers (TAs) or non-optimal structuring of PPP projects.
To address these issues, the Department of Economic Affairs has notified a panel of pre-qualified TAs on 01.07.2022 and developed a Manual for utilisation of this panel.