Department of Economic Affairs, Ministry of Finance, Government of India shall has issued scheme and guidelines for the India Infrastructure Project Development Fund. While quality advisory services are fundamental to procuring affordable, value proposition PPPs, the costs of procuring PPPs, and particularly the costs of transaction advisors, are significant. For providing financial support for quality project development activities to the States and the Central Ministries a corpus fund titled 'India Infrastructure Project Development Fund' (IIPDF), with initial contribution of Rs. 100 crore is being set up. Although it is envisaged as a revolving fund and would get replenished by the reimbursement of 'investment' through success fee earned from successfully bid projects, should there be a need, it can be supplemented in subsequent years through budget support.
The IIPDF would assist ordinarily up to 75% of the project development expenses. The assistance from IIPDF would ordinarily be in the form of interest free loan. On successful completion of the bidding process, the project development expenditure would be recovered from the successful bidder.