To Promote PPP in creation of infrastructure the Govt has included some sub sectors under the Scheme...........

Economic Affairs Financial Markets

To Promote PPP in creation of infrastructure, the Govt. has included some sub-sectors under the Scheme for Financial Support to PPPs in Infrastructure i.e. Viability Gap Funds Scheme. Consider the following:

1. Capital investment in the creation of modern storage capacity including cold chains and post-harvest storage.

2. Education, health and skill development, without annuity provision.

Which of the methods have been included?

1 only

2 only

Both 1 and 2

Neither of above

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Explanation:

Both the statements are correct.

Viability Gap Funding (VGF) Means a grant one-time or deferred, provided to support infrastructure projects that are economically justified but fall short of financial viability. The lack of financial viability usually arises from long gestation periods and the inability to increase user charges to commercial levels. Infrastructure projects also involve externalities that are not adequately captured in direct financial returns to the project sponsor. Through the provision of a catalytic grant assistance of the capital costs, several projects may become bankable and help mobilise private investment in infrastructure.