Lok Sabha Question No. 2405 (UNSTARRED), answered on 2016-03-11
Subject: Infrastructure Fund
Ministry: FINANCE
Asked by: E. T. MOHAMMED BASHEER, PR. SENTHILNATHAN, G. HARI, (SMT.) RATNA DE(NAG)

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2405

TO BE ANSWERED ON 11 TH  MARCH, 2016/ PHALGUNA 21, 1937 (SAKA)

## INFRASTRUCTURE FUND

## QUESTION

2405: SHRI E.T. MOHAMMED BASHEER: SHRI PR. SENTHIL NATHAN: SHRI G. HARI: DR. RATNA DE (NAG)

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  is  ready  to  launch  the  National  Infrastructure  Investment Fund;
- (b) if so, the details thereof and likely amount of initial corpus;
- (c) whether revival of stalled Public Private Partnership (PPP) projects are done/being done by the Government and if so, the details thereof for the same period; and
- (d) the measures taken/proposed to be taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

- (a) &  (b) Yes,  Madam.    National  Investment  and  Infrastructure  Fund  (NIIF)  has  been established by the Government of India with an objective to maximize economic impact mainly through  infrastructure  development  in  commercially  viable  projects,  both  greenfield  and brownfield, including stalled projects.  The details of the NIIF are in Office Memorandum No. 10/33/2014-Investment dated 20 th  August, 2015 which is available on the website of Ministry of Finance, Department of Economic Affairs:

(http://finmin.nic.in/the\_ministry/dept\_eco\_affairs/investment\_division/NIIF24082015.pdf) The initial  authorized  corpus of  NIIF  is  Rs.  40,000  crore,  which  may  be  raised  from  time  to time.

- (c) With  an  objective  to  create  an  institutional  mechanism  for  fast  tracking  of  stalled investment projects, a cell in the nature of Project Monitoring Group (PMG) had been set up in June, 2013 for both public and private sector projects with anticipated investments of Rs. 1000 crore or more or projects of strategic importance.  The project proponents can upload various issues concerning delay including grant of clearances from Central Ministries, State Governments or Local Authorities on the PMG web portal during the course of implementation of  their  projects.  The  PMG  pursues  such  projects  so  that  the  issues  causing  delay  in implementation of the projects are speedily resolved through tripartite meetings convened with the  concerned  Authorities  and  Project  Proponents. The  PMG  follows  up  with  the  concerned authorities  for  speedy  resolution/decision  on  various  issues,  including  grant  of  clearances, within the underlying policy framework.
- (d) In  the  Union  Budget  2015-16,  Finance  Minister  announced  that  the  PPP  mode  of infrastructure development has to be revisited and revitalized.  In pursuance of this announcement,  a  Committee  on  Revisiting  &  Revitalizing  the  PPP  model  of  Infrastructure Development was set up chaired by Dr. Vijay Kelkar. The Committee looked at various aspects including  how  to  revive  stressed  PPP  projects.  The  Report  of  the  Committee  which  was submitted to the Government has been uploaded on the Ministry of Finance's website*.

*(http://finmin.nic.in/reports/ReportRevisitingRevitalisingPPPModel.pdf)

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