VGF support for social infra enhanced to 30% on higher Rs 8,100 cr outlay

New Delhi, May 16 (IANS) The government has revamped the viability gap funding (VGF) scheme for creation of social infrastructure to give a boost to private sector investment in this critical area.

While announcing the fourth tranche of Rs 20 lakh-crore economic package, Finance Minister Nirmala Sitharaman said a outlay of Rs 8,100 crore has been given for the new VGF scheme where support up to 30% each of Total Project Cost will be given VGF by Centre and State/Statutory bodies.

For other sectors, VGF existing support of 20% each from GoI and States/Statutory bodies will, however, continue.

The changes have been done as Social Infrastructure Projects suffer from poor viability, Sitharaman said.

This VGF support will aid in development of hospitals, healthcare centres by the private sector.

To qualify for higher VGF, projects will have to be proposed by Central Ministries/State government/statutory entities.



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