Empowered Institution clears projects worth Rs 2,779 cr

Empowered Institution has given in-principle approval to five road projects worth Rs 2,778.72 crore, with viability gap funding (VGF) of Rs 555.72 crore.
The projects, in the Public-Private-Partnership mode, include development and operation of Sikar and Bikaner bypass section of NH-11 (under the Ministry of Road Transport and Highways) and 4-laning of Jalna-Ambad-Vadigodri section of State Highway 176 in Maharashtra, the Finance Ministry said in a statement.
The 52nd meeting of EI was chaired by Department of Economic Affairs Secretary Arvind Mayaram.
Three projects involve Government of Maharashtra, one Government of Karnataka and a project of Government of Madhya Pradesh for Viability Gap Funding of Rs 555.72 crore, the Finance Ministry said in a statement.

VGF is typically provided in competitively bid projects. Under VGF, the central government meets up to 20 per cent of capital cost of a project being implemented in the PPP mode by a Central Ministry, State government, statutory entity or a local body.
The State government, sponsoring ministry or the project authority can pitch in with another 20 per cent of the cost to make them more attractive for investors.