India Infrastructure Project Development Fund Scheme

Why in the News?

The Department of Economic Affairs (DEA) under the Ministry of Finance notifies India Infrastructure Project Development Fund Scheme (IIPDF Scheme).

Key Points:

Background: 

• A government task force on the National Infrastructure Pipeline (NIP) had in April 2020 envisaged capital investments of Rs 111 lakh crore until FY25. 
• The centre (39%) and the states (40%) are expected to have almost an equal share in the NIP implementation, followed by the private sector (21%). 
• To attract private players, the government has been planning to make the Public-Private Partnership (PPP) projects more attractive through fiscal and other forms of support.

About the IIPDF Scheme:

• It is central sector scheme set up in 2007.
• Funding under IIPDF Scheme is in addition to the already operational Scheme for Financial Support to PPPs in Infrastructure (Viability Gap Funding Scheme).
• Through the VGF scheme infrastructure projects undertaken through PPP mode that are economically justified but commercially unviable are supported.

Aim: 

• To provide support to project sponsoring authorities (PSAs), both in the Central and state governments.
  • To meet the cost of transaction advisors and consultants engaged in the development of PPP projects.

Significance: 

• Improve the quality and pace of infrastructure development.
• Encourage private sector participation in the infrastructure sector
• Support the PSAs to create a shelf of bankable viable PPP projects.
• Create durable assets
• Spur employment and 
• Stimulate economic growth