Bhubaneswar, Nov 07 (Odisha.in) As many as 200 project proposals involving $500 billion under Private –Public-Partnership (PPP) mode from various state governments have reached the Union Finance Ministry for financing under the Viability Gap Funding (VGP), Said Sidhushree Khullar, Additional Secretary of the Department of Economic Affairs Tuesday.
“Department of Economic Affairs have already cleared 23 out of the 200 PPP projects”, said Khullar in the side lines of a Workshop for States on PPPs jointly organized here by her department and the Orissa unit of Confederation of Indian Industries .
“The total approved projects for VGF funding include 22 state high-way projects and the Navi Mumbai Meetro Railway Projects”, she informed.
The objective of the workshop was to sensitise the states about the frame work for PPP projects.
Stating that central government wants as many bankable infrastructure development projects big or small under the PPP route, Khullar said ,” it is the unavoidable option to close the glaring infrastructural deficit across the states with the economy growing so fast”.
“To make the infrastructural projects in PPP mode commercially viable, the
VGF provides fiancial support grants one time or deferred and the funding shall not exceed 20 per cent of the total project cost”, she said.
Parag Gupta, the Special Secretary, in-Charge of PPP cell, Orissa said that there had been good response from Private parties to set up infrastructural projects after the formulation of PPP policy by the state.
So far 32 number of projects have been listed under the PPP mode. Bhubaneswar-Paradeep Road project and Dhamra Port project are the few success stories under the PPP policy, he said.