The Ministry of Finance on 4th November 2022, notified the Scheme for Financial Support for Project Development Expenses of PPP Projects – India Infrastructure Project Development Fund Scheme (IIPDF Scheme). The Department of Economic Affairs (DEA) has identified IIPDF Scheme as a mechanism through which Project Sponsoring Authority will be able to source funding to cover the Public Private Partnership (PPP) transaction costs, thereby reducing the impact of costs related to procurement of TAs on their budgets.
The project proposal may be posed by Central/State Government Ministries/Departments, Public Sector Enterprises (PSEs), Statutory Authorities or other entities under their administrative control, hereinafter referred as Project Sponsoring Authorities or PSAs.
The project proposal may be from any of the sectors covered under the harmonized Master List of Infrastructure sub sectors and sectors covered under VGF Scheme, notified by DEA from time to time and the proposal may be submitted at any stage of engagement of TAs.
Funding under IIPDF Scheme can be for a maximum amount of Rs.5 Crore for a single proposal (Project TA/Seminar/Workshop/Professional Service Expenses, etc.). This funding shall be inclusive of any tax implications thereon and the total amount of funding under IIPDF Scheme, including taxes, if any, thereon, shall not exceed Rs.5 Crore. Any funding requirement over and above Rs.5 Crore may be borne by the Project Sponsoring Authority itself.
