VGF funding scheme may come in handy for some PPP projects in Orissa
Bhubaneswar- Cuttack- Puri, Business Standard, Integrated Sewerage, Khordha, PPP, Puri, REAL ESTATE, Roads, highways and Bus stands, Shamuka Beach project, VGF May 19th. 2008, 11:56amFollowing is an excerpt from a report in Business Standard.
The Planning Commission today suggested the Orissa government to prepare a detailed project report (DPR) for three projects for availing of assistance under the viability gap funding (VGF) of the Centre.
These three projects are Rs 3200 crore Samuka Special Tourism Project, Rs 1500 crore Sambalpur-Rourkela road project and the Rs 1500 crore worth Bhubaneswar Solid Waste Management Project.These projects worth about Rs 6200 crore will be implemented on a pilot basis.
"A new format has been developed for availing of the assistance from VGF and the Orissa government will have to prepare a DPR keeping in view the new format and submit it to the Planning Commission", Subash Pani, secretary, Planning Commission said.
After reviewing the projects taken up in the Public-Private-Partnership ( PPP) mode by the Orissa government, Pani told media persons that the Centre can provide upto 20 percent of the project cost under the VGF. So the state government can take advantage of it.
He said, the Centre introduced the VGF last fiscal and no state has availed of the assistance from this fund created with the objective of bridging the gap in funding viable projects taken up in PPP mode.
Pani said, the Orissa government plans to execute 35 important infrastructure projects in PPP mode. While 25 projects are in the pipeline, 10 projects are on going.
The on-going projects include Rs 68 crore Palasapanga- Bamberi road, Gopalpur port, Dhamra Port, Rs 480 crore international convention centre, Rs 146 crore IT and Corporate Tower (Bhubaneswar), Rs 500 crore Info Park(Bhubaneswar), Rs 35.67 crore Knowledge park, Rs 352 crore SEZ-BPO at Mancheswar, Rs 76 crore Commercial and IT Complex at Rourkela.