VGF to support infra projects worth Rs 2,750 cr in FY18

Viability Gap Funding, which has been provided a budgetary support of Rs 550 crore, will support projects worth Rs 2,750 crore towards infrastructure building in 2017-18.

The VGF was Rs 1,000 for the current fiscal.

VGF of up to 20 per cent of the total project cost is provided under this scheme.

The Output-Outcome Framework for Schemes 2017-18 said that the projected medium term outcome of the scheme is to support infrastructure projects that are economically justified but fall short of financial viability.

VGF is a one-time grant provided by the public sector for financial support to PPPs in infrastructure, with the objective of making a project commercially viable.

This will also lead to increased private sector participation in developing infrastructure in the country through Public-Private-Participation mode.

The government has also provided Rs 572 crore towards interest equalisation support to EXIM Bank of India.

The allocation is meant to promote India's strategic political and economic interest abroad by positioning it as an emerging power, investor country and partner for developing countries.

"Defaults in repayment of guaranteed loans by borrower country to EXIM bank, will be compensated by Government of India with a ceiling of Rs 934 crore," the document said.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)