New Delhi All public-private partnership (PPP) projects in the power transmission sector, including intra-state transmission networks, will now qualify for government grants under the viability-gap funding (VGF) scheme, making them attractive to private sector investors.

The VGF scheme, finalised by the finance ministry few years back to promote investment in the infrastructure sector, involves central assistance in the form of grant for capital expenditure up to 20% of the project cost, while the state government — being one of the owners — could also provide a matching grant with a ceiling of another 20% of the project cost.