In order to be eligible for funding under this Scheme, a PPP project shall meet the following criteria:
3.1. The project shall be implemented i.e. developed, financed, constructed, maintained and operated for the project Term by a Private Sector Company to be selected by the Government or a statutory entity through a process of open competitive bidding; provided that in case of railway projects that are not amenable to operation by a Private Sector Company, the Empowered Committee may relax this eligibility criterion.
3.2. The PPP project should be from one of the following sectors:
• Roads and bridges, railways, seaports, airports, inland waterways;
• Power;
• Urban transport, water supply, sewerage, solid waste management and other physical infrastructure in urban areas;
• Infrastructure projects in Special Economic Zones; and
• International convention centres and other tourism infrastructure projects;
Provided that the Empowered Committee may, with approval of the Finance Minister, add or delete sectors/sub-sectors from the aforesaid list.
3.3. The project should provide a service against payment of a predetermined tariff or user charge.
3.4. The concerned Government/statutory entity should certify, with reasons;
• that the tariff/user charge cannot be increased to eliminate or reduce the viability gap of the PPP;
• that the project Term cannot be increased for reducing the viability gap; and
• that the capital costs are reasonable and based on the standards and specifications normally applicable to such projects and that the capital costs cannot be further restrict ed for reducing the viability gap.