Panaji: The state government has created a revolving fund of another 40 crore as Viability Gap Funding in case of projects taken up under the scheme for support to public private partnership in infrastructure.

It was notified last week by the state with an allotment of 50 crore to encourage PPP projects.

In the notification issued by the state, the Goa government has acknowledged a significant deficit in the availability of physical infrastructure across different sectors and that this is hindering the state's economic development.

The scheme will be administered by the finance department and the required budgetary provisions will be made on an annual basis.

Viability Gap Funding means a grant, one-time or deferred, provided under this scheme with the objective of making a project commercially viable.

The project will have to provide a service against payment of a predetermined tariff or user charge.

The total Viability Gap Funding under this scheme cannot exceed 20% of the total project cost.