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FM raises viability gap funding for social infra projects
PTI, May 16, 2020, 6:06 PM IST
New Delhi: Finance Minister Nirmala Sitharaman on Saturday announced a hike in viability gap funding (VGF) for development of social infrastructure.
In her fourth tranche of economic stimulus, she said Rs 8,100 crore will be provided as viability gap funding for development of social infrastructure.
She said social infrastructure projects suffer from poor viability. Therefore, the government will enhance the quantum of viability gap funding up to 30 per cent each of the total project cost as VGF by central and state/statutory bodies.
For other sectors, existing VGF support of 20 per cent each from the government of India and state/statutory bodies shall continue.
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