Question
How much Viability Gap Funding can the Central
Government provide for infrastructure projects under PPP?Solution
Under the Viability Gap funding Scheme (scheme for financial support to Public Private Partnership in Infrastructure), the government provides total viability gap funding up to 20% of the total project cost , normally in form of capital grant at the stage of project construction. Additionally, sponsoring authority or state government, can provide another 20% of TPC as VGF. As such a total of 40% VGF can be provided to a project.
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