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India Infrastructure Project Development Fund (IIPDF) Scheme

Need & Purpose of the Scheme: PPPs are complex transactions. Therefore, the Project Sponsoring Authorities (PSA) of PPP Projects need expert advice for formulating project documents award and implementation of projects in an efficient, transparent and fair manner and closing out the transactions. The success of PPP project depends on well-structured financially viable project. Thus, role of Transaction Adviser "TAs" (consultants) is critical for PPPs. However, procurement costs of transaction advisors are significant and often pose a burden on the limited budget of the Project Sponsoring Authority.

The Scheme: Accordingly, the IIPDF Scheme as a Central Sector Scheme with a total outlay of Rs.150 Crore for a period of 3 years from 2022-23 to 2024-25, was notified on 3rd November 2022 with amended provisions by the DEA. The Scheme provides funding to cover the PPP transaction costs to increase the quality and quantity of bankable PPP projects and reduce financial burden on PSA in respect of TA costs. Under the scheme a maximum amount of Rs. 5 Crore for a single proposal inclusive of any tax implications can be funded against the cost of consultants/transaction advisors of a PPP project. The new Scheme has seen considerable interest from States and till date 31 projects with funding of around Rs. 64.13 Cr have been approved since notification of the Scheme.