Norms set for core SPV

The committee on infrastructure headed by Prime Minister Manmohan Singh on Wednesday ironed out the 8216;8216;outstanding issues8217;8217; that were holding back launch of the special purpose vehicle SPV for financing critical infrastructure projects.

Under the consensus that was reached at the meeting, finances from the SPV could be availed on the basis of a 8216;8216;sequence of priority8217;8217; and sources said even infrastructure projects undertaken by the private sector could approach the SPV for funds.

However, there would be a priority for public sector projects as well as projects undertaken through public-private partnership PPP on the basis of their viability.

Earlier, there were differences between the Planning Commission and Finance Ministry over issues pertaining to what sort of projects would avail finances from the SPV. There was one opinion that private sector projects could not avail finances from the government-owned SPV and that the SPV could not refinance projects.