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Uttarkhand Viability Gap Funding Scheme 2008 (GoUk)
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Department of Finance, Government of Uttarakhand, has initiated Viability Gap Funding Scheme 2008  vide Office Memorandum No. 474/XXVII(7)/2008 dated 17th December 2008. This scheme is designed for promoting Public Private Partnership in physical and social infrastructure in the state.


Please click read more to check the salient features of this scheme.

Hindi version : icon GO 474/XXVII(7)/2008 VGF (Hindi) (658.14 kB 2009-09-08 07:59:52)

English version : icon GO 474/XXVII(7)/2008 VGF (English)i) (661.66 kB 2010-01-20 21:03:04)

Main Features of this scheme are :

Eligibility :

This Scheme is applicable for Pojects which meet following Criteria :

  1. The Project shall be implemented ie. developed, financed, constructed, maintained and operated for the Project Term by a Private Sector Entity to be selected by the Government of statutory entity through a process of open competitive bidding.
  2. The PPP project for Physical Infrastructure will include all the sectors elegible as per provisions of VGF scheme of GOI such as :
    • Roads and Bridges, airports
    • Power
    • Urban transport, water supply, sanitation sewerage,solid waste management and other physical infrastructure in urban areas
    • Ifrastructure projects in Special Economic Zones/Designated Industrial Areas
    • International Convention Centres and other Tourism Infrastructure Projects
  3. PPP Projects for Social Sector Infrastructure could include sectors such as :
    • General Education, including elementary, secondary higher and non formal education
    • Technical Education
    • Sports and Youth Services
    • Art & Culture
    • Medical, Public Health, Family Welfare & Medical Education
    • Labour and Employment
    • Agriculture Services, Agriculture Extension & Agriculture Education
    • Soil and Water conservation
    • Animal Husbandry, Veterinary and Animal Science Education
    • Forestry & Wild life, Environment Protection
    • Minor Irrigation
    • Non-conventional sources of Energy
    • Urban and Rural Development
    • Women and Child Development
    • Aforesaid list is not exhaustive and the Empowered Committee shall be authorized to add or delete sectors/subsectors from this list
  4. The project should provide service against payment of predetermined tariff or user charges
  5. The concerned administrative department should certify, with reasons
    • that the tariff/user charge can not be increased to eliminate or reduce the viability gap of the PPP
    • that the project term can not be increased for reducing the viability gap and;
    • that the capital costs are reasonable and based on the standards and specifications normally applicable to such projects and that the capital costs can not be further restricted for reducing the viability gap

Approval :

An Empowered Committee (EC) has been costituted, as below, to consider the proposals for VGF scheme :

  • Principal Secretary / Secretary Finance;
  • Principal Secretary / Secretary of the concerned Administrative Department;
  • Secretary, Planning; Member Secreatry

PPP Cell under Department of Planning shall work as the secratariat for this scheme.

EC, after due process, shal recommend projects for VGF. Approval for the projects which require VGF upto Rs. 5 Crore would be  by Finance Minister. Approval for the projects which require VGF above Rs. 5 Crore would be  by Chief Minister.


Extent of VGF :

  1. For physical infrastructure projects, GoUk support shall be limited to only providing supplementary support to VGF scheme of GoI. It will provided only for the projects which already have approval of VGF scheme of GoI and will be upto 20% of Project cost.
  2. In case of Social sector projects GoUk Uttarakhand Viability Gap Funding Scheme shall provide upto 33% (subject to maximum of Rs. 10 Crores) of the Project Cost. However in case of projects located in hilly areas and project beneficiaries are memebers of SC/ST, EC may on case to case basis recomment VGF upto 50% (subject to maximum of Rs. 15 Crores) of the project cost.


Last Updated on Thursday, 01 December 2011 11:26