Government notifies IIPDF program of financial support for project development expenses of PPP projects [Read Notification]
The Ministry of Finance has notified the IIPDF program of financial support for project development expenses of PPP projects.
The provision of quality infrastructure is key to achieving a higher growth trajectory for the economy on a sustainable basis. While stepping up public investment in infrastructure, the government is actively committed to developing an appropriate policy framework for private investment in infrastructure projects and simultaneously maintaining adequate checks and balances through transparency, competition and regulation. Therefore, public-private partnerships (PPP) are encouraged for the execution and operation of infrastructure projects. In addition to mobilizing public capital to attract private capital and undertaking a wider range of infrastructure projects, PPPs bring the benefits of private sector expertise and cost-saving technologies as well as cost savings. efficiency in operation and maintenance.
To this end, the Union Finance Minister in the budget speech for 2007-08 announced to Parliament, the establishment of a revolving fund with a corpus Rs.100 crore to speed up the project preparation process. Accordingly, the corpus fund titled “India Infrastructure Project Development Fund” (IIPDF) was established within the Department of Economic Affairs, Ministry of Finance, Government of India with an initial corpus of Rs. 100 crores to support the development of public-private partnership (PPP) projects that can be offered to the private sector.
Infrastructure is also one of the pillars of AtmaNirbhar Bharat. Thus, to promote the rapid development of infrastructure in the country, it is necessary to give a boost to the supervisory authorities of the projects to create a pipeline of projects to be taken in PPP mode.
Thus, the Union Finance Minister in the Budget Speech for 2022-23 announced that to finance infrastructure needs, scaling up public investment will need to be complemented by private capital on a significant scale -―Des Steps will be taken to enhance project sustainability, including PPPs, with technical assistance and knowledge from multilateral agencies. Improving financial sustainability must also be achieved by adopting global best practices, innovative modes of financing and a balanced distribution of risks”.