India Infrastructure Project Development Fund Scheme

Syllabus: General Studies Paper 3

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) 

• 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.
• 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.
• It is a Central Sector Scheme.
• 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.