• The Infrastructure Finance Secretariat (IFS) under the finance ministry has launched a revamped website to attract private investment in the infra sector.

• As part of this endeavour, the IFS has revamped its website (www.pppinindia.gov.in) for its enhanced value to the stakeholders involved in public-private partnership (PPP) projects.

• The website is dedicated to promoting and facilitating PPPs in India and helping in bridging the gap between the public and private sectors. 

• It serves as a digital platform that brings together government entities, private companies, investors and entrepreneurs fostering collaboration and innovation for sustainable growth.

Infrastructure Finance Secretariat

• The Infrastructure Finance Secretariat (IFS) has been established under the Department of Economic Affairs (DEA), ministry of finance with the idea of harmonising policies and initiatives related to infrastructure financing and development. 

• IFS have been set up to boost infrastructure development through a multitude of initiatives. These initiatives are directed towards promoting private investment in infrastructure.

• The Division has three units — Private Investment Unit, Energy Unit and National Infrastructure Pipeline (NIP) Facilitation Unit.

• The Private Investment Unit (erstwhile PPP Cell), now a part of the IFS, was set up in 2006 in the DEA. 

• The Private Investment Unit is responsible for policy level matters concerning PPPs, including policies, schemes, programmes, model concession agreements and capacity building. 

• The IFS, in its endeavour to usher in private investment in infrastructure, is constantly introducing interventions to set up an enabling ecosystem for infrastructure development and delivery.

• To promote the Digital India initiative, the IFS has launched the IIPDF portal for submitting applications for consideration under India Infrastructure Project Development Fund (IIPDF) scheme.

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 in infrastructure projects and simultaneously keeping adequate checks and balances through transparency, competition and regulation. 

• Consequently, PPPs are being encouraged for execution and operation of infrastructure projects. 

• In addition to leveraging public capital to attract private capital and undertaking a larger shelf of infrastructure projects, PPPs bring in the advantages of private sector expertise and cost reducing technologies as well as efficiencies in operation and maintenance. 

• In the Union Budget 2007-08, the government announced setting up of a revolving fund with a corpus of Rs 100 crore for supporting the development of PPP projects that can be offered to the private sector. 

• Accordingly the corpus fund titled “India Infrastructure Project Development Fund” (IIPDF) was created in Department of Economic Affairs.

• PPP transactions are complex and critical therefore the Project Sponsoring Authorities (PSAs) 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 advisers 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 three years from 2022-23 to 2024-25.

• DEA has come out with Scheme for Financial Support for Project Development Expenses of PPP Projects – ‘IIPDF Scheme’ for providing necessary support to the PSAs, both in the central and state governments, by extending financial assistance in meeting the cost of transaction advisers and consultants engaged in the development of PPP projects.

• The scheme was notified on November 3, 2022.

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