Govt to spend ₹8100 crore for enhanced VGF for social sector infra creation

'Government will enhance the quantum of viability gap funding upto 30% each of total project cost as VGF by centre and state statutory bodies,' FM Sitharaman said

Prashant K. Nanda
Updated16 May 2020, 06:11 PM IST
New Delhi: Union Finance Minister Nirmala Sitharaman addresses the fourth part of her press conference on the economic stimulus package announced by Prime Minister Narendra Modi,
New Delhi: Union Finance Minister Nirmala Sitharaman addresses the fourth part of her press conference on the economic stimulus package announced by Prime Minister Narendra Modi,(PTI)

Finance minister Nirmala Sitharaman Saturday said that government will spend Rs. 8100 crore to provide 30% viability gap funding (VGF) instead of the current 20% to boost private sector investment in social sector infrastructure creation.

“Government will enhance the quantum of viability gap funding upto 30% each of total project cost as VGF by centre and state statutory bodies,” Sitharaman said. For other sectors, the existing VGF support of 20% will continue.

Social infrastructure projects “suffer from poor viability” and the fresh move by the government will boost private investments in social sector infra like schools and hospitals, the finance minister said while unveiling the fourth tranche of details related to the covid-19 financial package.

Under the scheme, the projects, however, will have to be proposed by central ministries, state governments and statutory entities. This means, the move will benefit public-private-partnership projects in social sectors at the central and state level.

VGF is a grant to help projects that are economically justified but not financially viable. Grants under VGF are offered as a capital subsidy to attract the private sector players to participate in PPP projects that are otherwise financially unviable.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:16 May 2020, 06:11 PM IST
HomeNewsIndiaGovt to spend ₹8100 crore for enhanced VGF for social sector infra creation

Most Active Stocks

Tata Steel

167.05
03:57 PM | 16 JUL 2024
0.25 (0.15%)

Oil & Natural Gas Corporation

322.40
03:58 PM | 16 JUL 2024
-0.15 (-0.05%)

Bandhan Bank

198.30
03:41 PM | 16 JUL 2024
2.95 (1.51%)

Coal India

512.35
03:59 PM | 16 JUL 2024
14.4 (2.89%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Natco Pharma

1,281.05
03:59 PM | 16 JUL 2024
73.2 (6.06%)

Century Textiles & Industries

2,217.55
03:48 PM | 16 JUL 2024
116.85 (5.56%)

Tata Teleservices Maharashtra

81.33
03:54 PM | 16 JUL 2024
4.23 (5.49%)

India Cements

323.05
03:55 PM | 16 JUL 2024
15.8 (5.14%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    75,246.00928.00
    Chennai
    75,099.00344.00
    Delhi
    74,806.00-460.00
    Kolkata
    75,466.00419.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanMint Shorts