'Government will enhance the quantum of viability gap funding upto 30% each of total project cost as VGF by centre and state statutory bodies,' FM Sitharaman said Finance minister Nirmala Sitharaman Saturday said that government will spend Rs.
8100 crore to provide 30% viability gap funding (VGF) instead of the current 20% to boost private sector investment in social sector infrastructure creation. “Government will enhance the quantum of viability gap funding upto 30% each of total project cost as VGF by centre and state statutory bodies," Sitharaman said.
For other sectors, the existing VGF support of 20% will continue. Social infrastructure projects “suffer from poor viability" and the fresh move by the government will boost private