Consider the following statements Infrastructure Project Development Fund (IIPDF) Scheme: 1. It aims to provide financial assistance for project development expenses of Public-Private Partnership (PPP) projects. 2. It will contribute up to 75% of the project development expenses to the Sponsoring Authority as an interest-free loan. Which of the statements given above is/are correct? |ForumIAS

Q. Consider the following statements Infrastructure Project Development Fund (IIPDF) Scheme:
1.It aims to provide financial assistance for project development expenses of Public-Private Partnership (PPP) projects.
2.It will contribute up to 75% of the project development expenses to the Sponsoring Authority as an interest-free loan.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation: The Department of Economic Affairs (DEA), Ministry of Finance, has recently announced the India Infrastructure Project Development Fund (IIPDF) Scheme.

The scheme aims to provide financial assistance for project development expenses of Public-Private Partnership (PPP) projects.

The IIPDF Scheme will contribute up to 75% of the project development expenses to the Sponsoring Authority as an interest-free loan.
The remaining 25% will be co-funded by the Sponsoring Authority.
Upon successful completion of the bidding process, the project development expenditure will be recovered from the successful bidder.
If the bidding process fails, the loan will be converted into a grant.

Source: FORUMIAS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS