Union Government amends guidelines for financial support to PPP in infrastructure

Union Government on 31 March 2015 approved amendments to the Public Private Partnerships (PPP) guidelines. The approved amendments seek to enhance financial support to projects in infrastructure sector.
Decision in this regard was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Narendra Modi.
Amendments approved

• Change in the definition of a Private Sector Company in the guidelines for financial support to PPP in Infrastructure under the Viability Gap Funding (VGF) Scheme.
• The definition of a Private Sector Company means a company which is not a Government Company.
• In this case Government company is defined as any company in which more than 51 per cent of the paid-up share capital is held by the Union Government or State(s) Government or partly by Union Government and partly by State Government (s).
• It also includes a company which is a subsidiary company of such a Government company.

This decision was taken to remove any ambiguity in interpretation of the term Private Sector Company in order to align it with the definition of Government Company defined under Section 2 (45) of the Companies Act, 2013.

Month: Current Affairs - March, 2015