Viability Gap Funding (VGF) started in around 2004 to kick-start the economically Justified but financially unviable projects. It was meant to support a public-private partnership (PPP) kind of project, whereby the government would contribute up to some percentage of the total project cost. More support will be provided if some State agencies or Financial institutions would be interested in the project. Only infrastructure projects where the private sector selected through a competitive process will be awarded Viability Gap Funding (VGF) grants.
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