Project agreements must also follow best practices that ensure optimal value for money for public funds. Major financial institutions should regularly monitor and evaluate the payment of grants. Support under this scheme is only possible for infrastructure projects in which private sector sponsors are selected through a tendering process. Project agreements must also respect best practices that ensure optimal value for money for public funds and safeguard the interests of users. The project`s leading financial institution is responsible for regular monitoring and evaluation of project execution, with agreed milestones and performance levels, including grants. The VGF will only be paid after the private company has subscribed and spent the necessary equity contribution to the project. At its July 25, 2005 meeting, the firm`s Economic Affairs Committee (AECB) approved the public-private infrastructure partnership assistance program. The Indian government`s Viability Gap Funding Scheme is managed by the Ministry of Finance and provides financial support in the form of one-time or deferred grants for infrastructure projects implemented through P3s to make them commercially viable. The Indian government funds overall sustainability deficits of up to 20% of the total cost of the project; usually in the form of a grant at the construction stage of the project. The government or the legal body to which the project belongs can, if it so chooses, grant additional grants on its budget up to 20% of the total cost of the project. To carry out such projects, the government has developed a Capacity Gap Management Fund (FVG). Viability Gap Finance means a grant to support projects that are economically justified but are not fundable.
The guidelines for financial assistance to P3s in infrastructure, notified by the Ministry of Finance, the Ministry of Economic Affairs, are listed below: the Indian government has notified a program to finance sustainability deficits for infrastructure projects that will be implemented through public-private partnerships. It is a planning program managed by the Department of Finance and contains appropriate budgetary provisions that are included each year in the annual plans.