Ministry of Finance Notifies IIPDF Scheme
On 3rd November 2022, the Ministry of Finance notified the IIPDF Scheme for Financial Support for Project Development Expenses of PPP Projects.
Highlighting the purpose of the Scheme, the notification states that, “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 PPP transaction costs, thereby reducing the impact of costs related to procurement of TAs on their budgets. From Government of India‘s perspective, the IIPDF Scheme will increase the quality and quantity of PPP projects that are processed through the Central or States‘ project pipeline.“
The key offerings of the Scheme are :
- 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. Any funding requirement over and above Rs.5 Crore may be borne by the Project Sponsoring Authority itself.
- The cost of consultants/transaction advisors for a PPP project can be funded, where Consultants/TAs are appointed through a transparent system of procurement including from the list of empanelled TAs of DEA or from the list of empanelled TAs of any other Central Ministry/Department or State Government or on nomination basis, in accordance with the applicable GFR Rules.
- Funding under the IIPDF Scheme may not result in a successful PPP project as the success of a PPP project depends on various factors.
- The IIPDF Scheme shall be administered by the Approval Committee (AC), which shall consist of; Joint Secretary ISD, DEA – Chairperson, Representative of NITI Aayog, Deputy Secretary/Director (PIU), DEA – Member Secretary.