The government on Wednesday approved the revamped viability gap funding (VGF) scheme envisaging a total outlay of Rs 8,100 crore for encouraging investment in social as well as economic infrastructure projects.The Cabinet Committee on Economic Affairs has approved continuation and revamping of the scheme for financial support to public-private partnerships (PPPs) in infrastructure VGF scheme till 2024-25, Information and Broadcasting Minister Prakash Javadekar told reporters here.
The revamped scheme will provide financial support to PPP projects in the infrastructure sector spread over a period of five years ending 2024-25.
Of the total amount of Rs 8,100 crore, Rs 6,000 crore has been earmarked for PPP projects in the economic infrastructure segment and remaining Rs 2,100 crore for social infrastructure projects, said an official release after the Cabinet meeting.
The earlier VGF scheme was limited to projects concerning economic infrastructure.The revamped VGF scheme will attract more PPP projects and facilitate private investment in the social sectors (health, education, waste water, solid waste management and water supply, among others).
Creation of new hospitals and schools will create many opportunities to boost employment generation, according to an official release.