India Infrastructure Project Development Fund Scheme

• Recently, the Department of Economic Affairs (DEA), Ministry of Finance notified the Scheme for Financial Support for Project Development Expenses of PPP Projects – India Infrastructure Project Development Fund Scheme (IIPDF Scheme).

IIPDF Scheme

• It is a Central Sector Scheme which will aid the development of quality PPP projects by providing necessary funding support to the project sponsoring authorities, both in the Central and State Governments.

Funding:

• The corpus of the IIPDF shall comprise of initial budgetary outlay of Rs. 100 Crore by the Ministry of Finance.
• This would be supplemented, should it become necessary, through budgetary support by the Ministry of Finance from time to time.
• Funding under IIPDF Scheme is in addition to the already operational Scheme for Financial Support to PPPs in Infrastructure (VGF Scheme).
• Organisational Structure: The IIPDF will be administered by the Empowered Institution. The Empowered Institution will:
• Select projects for which project development costs will be funded.
• Set the terms and conditions under which the funding will be provided and recovered.
• Set milestones for disbursing and recovering (where appropriate) the funding.
• The Public Private Partnership Cell of the DEA will provide support functions to examine the applications received for assistance under IIPDF.