What is the eligibility criteria for VGF funding?

Faraz Faraz
Answered on February 17,2020

a) The PPP projects may be posed by the Central Ministries, State Government or Statutory Authorities (like Municipal Authorities and Councils), which own the underlying assets;.
b) To be eligible for financing under the scheme, the PPP projects should be implemented, i.e. developed, financed, constructed, maintained and operated for the Projects term by a Private Sector Company to be selected by the Government or a statutory entity through a transparent and open competitive bidding process.
c) The criterion for bidding should be the amount of Viability Gap Funding required by the Private Sector Company for implementing the project where all other parameters are comparable.
d) The project should provide a service against payment of pre-determined tariff or user charge.
e) This Scheme will apply only if the contract/concession is awarded in favour of a private sector company.
f) The approval to projects is given prior to invitation of bids and actual disbursement takes place once the private entity has expended his portion of the equity.
g) The final VGF is determined through the bidding.

The detailed VGF guidelines may be accessed at the following link.