INTERVIEW FOR CSE 2019
All ForumIAS members selected for CSE 2019 Personality Test must submit their details and DAF and register below to receive further instructions and guidance from ForumIAS. Click here to register now
INTERVIEW 2020 CHANNEL
ForumIAS Channel for Interview Preparation is now Active! Please join the channel by clicking here
We are hiring!

What is Viability Gap Funding?

This is has something to do with Public Private Partnership Model of development and it is one of the methods of funding for PPP projects. Have read it so many times in the hindu and yet it is not explained anywhere. can someone explain What is Viability Gap Funding?

Comments

  • edited 5:48PM
    I am not sure but Viability Gap Funding is (probably) the funds that govt grants to private companies to undertake projects which are not viable for the pvt company. Under Viability Gap Funding, say a company proposes to build an airport at Rs 1000 crore cost. It says it can recover Rs 800 crore from user charges, but it will still have a loss of Rs 200 crore, which makes the prject unviable for the private company . Under Viability Gap Funding, the govt can grant it the additional Rs 200 crore to make the project viable.

    Heard it in the PM's budget speech, searched this post and answered it before i forgot. The govt has proposed Viability Gap Funding for infrastructure projects!
  • edited May 2012
    it is just a gap of funding fulfilled by govt to viable a project based on ppp,nothing else.....
This discussion has been closed.

Welcome!

We are a secret self-moderated community for Civil Services preparation. Feel free to join, start a discussion, answer a question or just to say Thank you.

Just dont spread the word ;)

Sign in or join with Facebook or Google