The Ministry of Finance has notified the IIPDF Scheme for Financial Support for Project Development Expenses of PPP Projects.
The provision of quality infrastructure is critical to attaining a higher growth trajectory for the economy on a sustained basis. While stepping up public investments in infrastructure, the Government has been actively engaged in developing an appropriate policy framework for private investment in infrastructure projects and simultaneously keeping adequate checks and balances through transparency, competition, and regulation. Consequently, Public-Private Partnerships (PPPs) are being encouraged for the execution and operation of infrastructure projects. In addition to leveraging public capital to attract private capital and undertaking a larger shelf of infrastructure projects, PPPs bring in the advantages of private sector expertise and cost-reducing technologies as well as efficiencies in operation and maintenance.
Towards this end, the Union Finance Minister in the Budget Speech for 2007-08 announced in the Parliament, the setting up of a Revolving Fund with a corpus Rs.100 crore to quicken the process of project preparation. Accordingly, the corpus fund titled ―India Infrastructure Project Development Fund‖ (IIPDF) was created in the Department of Economic Affairs, Ministry of Finance, Government of India with an initial corpus of Rs. 100 crore for supporting the development of Public Private Partnership (PPP) projects that can be offered to the private sector.
Infrastructure is also one of the pillars of the AtmaNirbhar Bharat. Thus, to promote rapid Infra Development in the nation, it is necessary to give a fillip to Project Sponsoring Authorities for creating a pipeline of projects to be taken up on PPP mode.
Hence, the Union Finance Minister in the Budget Speech for 2022-23 announced that for financing the infrastructure needs, the stepping-up of public investment will need to be complemented by private capital at a significant scale –―Measures will be taken to enhance financial viability of projects including PPP, with technical and knowledge assistance from multi-lateral agencies. Enhancing financial viability shall also be obtained by adopting global best practices, innovative ways of financing, and balanced risk allocation”.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
