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Empowered Institution clears Projects worth INR 2,779 crore

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Empowered Institution has given in-principle approval to five road projects worth INR 2,778.72 crore, with viability gap funding (VGF) of INR 555.72 crore.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The projects, in the Public-Private-Partnership mode, include development and operation of Sikar and Bikaner bypass section of NH-11 (under the Ministry of Road Transport and Highways) and 4-laning of Jalna-Ambad-Vadigodri section of State Highway 176 in Maharashtra, the Finance Ministry said in a statement.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The 52nd meeting of EI was chaired by Department of Economic Affairs Secretary Arvind Mayaram.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Three projects involve Government of Maharashtra, one Government of Karnataka and a project of Government of Madhya Pradesh for Viability Gap Funding of INR 555.72 crore, the Finance Ministry said in a statement.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">VGF is typically provided in competitively bid projects. Under VGF, the central government meets up to 20 per cent of capital cost of a project being implemented in the PPP mode by a Central Ministry, State government, statutory entity or a local body.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The State government, sponsoring ministry or the project authority can pitch in with another 20 percent of the cost to make them more attractive for investors.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>