PRIVATE PARTICIPATION

(1) This Act would apply to all projects including investment and infrastructure projects undertaken by UIIDB. Additionally, this Act would apply for disinvestment and monetization projects of the State government: Provided that UIIDB shall take up projects with a minimum capital cost of Rs. 25 Crores. The threshold may be revised by the cabinet from time to time: Provided also that projects executed via the Board and funded through the Fund would provide a minimum IRR to State Government of [RBI repo rate + 4%] after factoring any VGF or other support as provided under this Act. The threshold may be revised by the cabinet from time to time: Provided further also that in case of projects that require VGF support, a maximum of 40% of the project cost may be paid as VGF from the Fund. A project requiring higher than 40% VGF may be taken up only if the additional VGF required (above 40% of the project cost) is provided through budgetary support / other means by the State Government The threshold may be revised by the cabinet from time to time.