India Infrastructure Project Development Fund (IIPDF) Scheme

Scheme for Financial Support for Project Development Expenses for PPP Projects-IIPDF Scheme

Provision of quality infrastructure is critical to attain a higher growth trajectory for the economy on a sustained basis. While stepping up public investments in infrastructure, the Government has been actively engaged in developing an appropriate policy framework for private investment. Towards this end, the then Union Finance Minister in the Budget Speech for 2007-08 announced in the Parliament, the setting up of a Revolving Fund with a corpus Rs.100 crore to quicken the process of project preparation. Accordingly, the corpus fund titled ―India Infrastructure Project Development Fund (IIPDF) was created in the Department of Economic Affairs, Ministry of Finance, Government of India with an initial corpus of Rs. 100 crore for supporting the development of Public Private Partnership (PPP) projects that can be offered to the private sector.

PPP transactions are complex and critical therefore the Project Sponsoring Authorities (PSA) of PPP Projects need expert financial, legal, and technical advice for formulating project documents necessary for award and implementation of projects in an efficient, transparent and fair manner and closing out the transactions. Further, the procurement costs of transaction advisors are significant and often pose a burden on the limited budget of the Project Sponsoring Authority. Understanding this need, DEA has restructured the existing fund as a Central Sector Scheme with total outlay of Rs.150 Crore for a period of 3 years from 2022-23 to 2024-25.The scheme is notified on 3.11.2022.

IIPDF Scheme (Notified on 3rd Nov 2022)

Understanding this need, DEA has restructured the existing fund as a Central Sector Scheme with total outlay of Rs.150 Crore for a period of 3 years from 2022-23 to 2024-25.The scheme is notified on 3.11.2022

The Purpose of the IIPDF Scheme (Notified on 6th Jun 2023)

The Department of Economic Affairs (DEA) has identified IIPDF Scheme as a mechanism through which Project Sponsoring Authority will be able to source funding to cover the PPP transaction costs, thereby reducing the impact of costs related to procurement of TAs on their budgets. From Government of India‘s perspective, the IIPDF Scheme will increase the quality and quantity of PPP projects that are processed through the Central or States‘ project pipeline.
Funding under the IIPDF Scheme is available to the Project Sponsoring Authorities for PPP projects for the purpose of meeting the project development costs which may include the expenses incurred by the Project Sponsoring Authority in respect of feasibility studies, environment impact studies, financial structuring, legal reviews and development of project documentation, including concession agreement, commercial assessment studies (including traffic studies, demand assessment, capacity to pay assessment), grading of projects etc. required for achieving Technical Close of such projects, on individual or turnkey basis, but would not include expenses incurred by the Project Sponsoring Authority on its own staff. The funding under IIPDF Scheme can be availed to finance the cost of consultants and transaction advisors.

The IIPDF’s organizational structure – Competent Authority for Approval

The IIPDF scheme shall be administered by the Approval Committee (AC). The composition of the Approval Committee is as under:

Joint Secretary ISD, DEA - Chairperson

Representative of NITI Aayog

Deputy Secretary/Director (PIU), DEA – Member Secretary

For more details on the funding, Applicability, Appointment of Consultants/ TAs and Disbursements under the Scheme please refer detailed guidelines:-

Sr No.	Title	Notified On
1	Guidelines for India Infrastructure Project Development Fund (IIPDF) Scheme - English Version	Nov 03, 2022
2	Guidelines for India Infrastructure Project Development Fund (IIPDF) Scheme - Hindi Version	Nov 03, 2022
3	Gazette Notification dated 3rd November 2022	Nov 03, 2022
4	Annexure I - Memorandum for Consideration (MFC#)	Nov 03, 2022
5	Annexure II - Suggestive Table of Contents of the Preliminary_Pre-feasibility Report(only for Guidance purpose)	Nov 03, 2022
6	Annexure III - Format of request from Project Sponsoring Authority for release of funds to the PSA under IIPDF Scheme	Nov 03, 2022