The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approvedContinuation and Revamping of the Scheme for Financial Support to Public Private Partnerships (PPPs) in Infrastructure Viability Gap Funding (VGF) Schemetill 2024-25 with a total outlay of Rs. 8,100 cr.

The revamped Scheme is mainly related to introduction of following two sub-schemes for mainstreaming private participation in social infrastructure:

a.   Sub scheme -1

This would cater to Social Sectors such as Waste Water Treatment, Water Supply, Solid Waste Management, Health and Education sectors etc. These projects face bankability issues and poor revenue streams to cater fully to capital costs. The projects eligible under this category should have at least 100% Operational Cost recovery. The Central Government will provide maximum of 30% of Total Project Cost (TPC) of the project as VGF and State Government/Sponsoring Central Ministry/Statutory Entity may provide additional support up to 30% of TPC.

b.   Sub scheme -2

This Sub scheme will support demonstration/pilot social sectors projects. The projects may be from Health and Education sectors where there is at least 50% Operational Cost recovery. In such projects, the Central Government and the State Governments together will provide up to 80% of capital expenditure and upto 50% of Operation & Maintenance (O&M) costs for the first five years. The Central Government will provide a maximum of 40% of the TPC of the Project. In addition, it may provide a maximum of 25% of Operational Costs of the project in first five years of commercial operations.

Since the inception of the scheme, 64 projects have been accorded 'final approval' with Total Project Cost of Rs. 34,228 crore and VGF of Rs. 5,639 crore. Till the end of Financial Year 2019-20, VGF of Rs. 4,375 crore has been disbursed.

Benefits:

The aim of the scheme is to promote PPPs in social and Economic Infrastructure leading to efficient creation of assets and ensuring their proper Operation and Maintenance and make the economically/socially essential projects commercially viable. The scheme would be beneficial to public at large as it would help in creation of the Infrastructure for the country.

Implementation Strategy:

The new Scheme will come into force within one month of the approval of Cabinet. Proposed amendments under the revamped VGF scheme would be suitably incorporated in the Guidelines for the Scheme. All steps will be taken up for the promotion of the revamped VGF and in monitoring of the supported projects.

Impact:

Revamping of the proposed VGF Scheme will attract more PPP projects and facilitate the private investment in the social sectors (Health, Education, Waste Water, Solid Waste Management, Water Supply etc.). Creation of new hospitals, schools will create many opportunities to boost employment generation.

Expenditure Involved:

The revamped Scheme will be financed from budgetary support of Ministry of Finance. The projected outlay of the revamped VGF scheme till the Financial Year 2024-2025 is as under:

 

Financial Year

 

Scheme for Financial Support to        PPPs       in       Economic Infrastructure

(Rs. crore)

 

Scheme for Financial Support to PPPs in Social Infrastructure

(Rs. crore)

2020-21

 

1,000

 

400

 

2021-22

 

1,100

 

400

 

2022-23

 

1,200

 

400

 

2023-24

 

1,300

 

400

 

2024-25

 

1,400

 

500

 

Total

 

6,000

 

2,100

 

 

Background:

The Department of Economic Affairs, Ministry of Finance introduced "the Scheme for Financial Support to PPPs in Infrastructure" (Viability Gap Funding Scheme) in 2006 with a view to support infrastructure projects undertaken through PPP mode that are economically justified but commercially unviable due to large capital investment requirements, long gestation periods and the inability to increase user charges to commercial levels, hi this existing Scheme, VGF up to 40%of the Total Project Cost (TPC) is provided by the Government, of India (Gol) and the sponsoring authority in the form of capital grant at the stage of project construction (20%+20%

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PM Modi interacts with SVAMITVA beneficiaries
January 18, 2025

The Prime Minister Shri Narendra Modi distributed over 65 lakh property cards under SVAMITVA Scheme to property owners in over 50000 villages in more than 230 districts across 10 States and 2 Union territories today through video conferencing. During the event, he interacted with five beneficiaries to know their experiences related to the SVAMITVA scheme.

Interacting with Shri Manohar Mewada, a SVAMITVA beneficiary from Sehore, Madhya Pradesh, the Prime Minister asked him to share his experience related to SVAMITVA scheme. He asked Shri Manohar how the loan borrowed using property papers has helped him and what changes it brought to his life. Shri Manohar explained that he took a loan of 10 lakh for his dairy farm, which helped him start the business. He mentioned that he, his children, and even his wife work in the dairy farm, and it has brought additional income. Shri Manohar also highlighted that having property papers made it easier for him to get a loan from the bank. The Prime Minister remarked that the Union Government's schemes have reduced the hardships in people's lives. He expressed his happiness in seeing that the Swamitva Yojana has increased the income of lakhs of families. He emphasized that the Government's priority was to ensure that every citizen held their head high with pride and experience ease in their lives. He highlighted that the Swamitva Yojana is an extension of this vision.

The Prime Minister then interacted with Smt Rachana, a SVAMITVA beneficiary from Shri Ganganagar, Rajasthan. When asked by the PM about her experience of the scheme, she said that she had been living in his small house for 20 years without any property documents. She mentioned that she took a loan of Rupees 7.45 lakh under the Swamitva Yojana and started a shop, which has brought additional income. Expressing her happiness, she said that she never expected to get the property documents despite residing for 20 years in the same house. When asked further to describe the other benefits received due to SVAMITVA scheme, she further informed that she was a beneficiary of Swachh Bharat scheme and took a loan of Rs 8 lakh under the PM MUDRA Yojana and was also working under the Aajeevika scheme as well as the family benefited from Ayushman scheme. She further expressed her desire to send her daughter for higher studies to Australia. The Prime Minister wished her the best and her daughter's dreams to come true. He appreciated the sentiment that the Swamitva Yojana is not just fulfilling basic needs but also empowering citizens by giving wings to their aspirations. The Prime Minister acknowledged that the true success of any scheme lies in its ability to connect with people and make them stronger. He thanked Smt Rachana for sharing her story and encouraged the other villagers to benefit from the opportunities provided by the Government.

Shri Modi then interacted with Shri Roshan Sambha Patil, a beneficiary of SVAMITVA from Nagpur, Maharashtra. He asked Shri Roshan to explain how he got the card, how it helped him, and what benefits he has gained from it. Shri Roshan informed the Prime Minister that he had a big, old house in the village, and the property card helped him secure a loan of 9 lakh, which he used to rebuild his house and improve the irrigation for farming. He said that there was a significant increase in his income and crop yield, highlighting the positive impact of the Swamitva Yojana on his life. Upon the Prime Minister’s inquiry of the ease of securing a loan with SVAMITVA card, Shri Roshan said that there were a lot of difficulties with documents and securing a loan was a tough task. He added that the Swamitva card alone was sufficient without the need of other documents to secure a loan. Expressing his gratitude to Shri Modi for the SVAMITVA scheme, Shri Roshan said that he grows vegetables and three crops, which gives him profit, enabling him to easily repay the loan. Upon the Prime Minister’s inquiry of benefits from other schemes of the Union Government, Shri Roshan said that he was a beneficiary of the PM Ujjwala Yojana, PM Samman Nidhi scheme and the PM Crop Insurance scheme. He further informed that many people from his village were benefiting a lot from the Swamitva scheme and getting loans easily to do their own small businesses and farming. The Prime Minister remarked that it was heartening to see how much the Swamitva Yojana is helping people. He highlighted that people are building their homes and using loan money for farming. The Prime Minister noted that having a roof over their heads is improving the standard of living in villages. He emphasized that people can now focus on their personal, societal, and national prosperity. The Prime Minister pointed out that being free from these worries is highly beneficial for the country.

Interacting with Smt Gajendra Sangeetha, a SVAMITVA beneficiary from Raigadh, Odisha, the Prime Minister asked her to share the experience related to SVAMITVA scheme. She said there had been a big change as there were no proper documents for the past 60 years and now with the SVAMITVA cards, their confidence was boosted as well as made them happy. She added that she wished to take a loan and expand her tailoring business and expressed her gratitude to the Prime Minister. Extending his best wishes for the expansion of her work and home, Shri Modi highlighted that the Swamitva Yojana has alleviated a major concern by providing property documents. He noted that she was also a member of a Self Help Group (SHG), and the government continues to support women's SHGs. He emphasized that the Swamitva Yojana is set to transform entire villages.

The Prime Minister interacted with Shri Varinder Kumar, a SVAMITVA beneficiary from Sambha, Jammu & Kashmir. When asked by the PM about his experience of the scheme, he said he was a farmer and he and his family were very happy to have received the property card. He added that they were living on their land for many generations, and now having the documents made them feel proud. Expressing his gratitude to the PM, he informed that no one in his village had any documents, despite living in the village for over 100 years. He added that the property card he received helped resolve his land dispute and now he could mortgage the land and take a loan from the bank, which could help with home repairs and strengthen his family's financial situation. When enquired about the positive changes under the Swamitva Yojana, he said that the property cards received by his village had clearly defined ownership rights for everyone and many disputes related to land and property were resolved to a great extent. Therefore, he added that the villagers could mortgage their land and property to take loans. He sincerely thanked the PM on behalf of the villagers. The Prime Minister remarked that it was a pleasure to speak with everyone. He expressed happiness that people are not just considering the Swamitva Yojana card as a mere document but are also using it as a means for progress. The Prime Minister highlighted that the SVAMITVA initiative was paving the way for their development.