PIB Summary- 5th November, 2022 | PIB (Press Information Bureau) Summary - UPSC PDF Download

India Infrastructure Project Development Fund Scheme

Why in News?
The Department of Economic Affairs (DEA), Ministry of Finance, Government of India, notifies Scheme for Financial Support for Project Development Expenses of PPP Projects – India Infrastructure Project Development Fund Scheme (IIPDF Scheme)

About IIPDF Scheme

• As a central sector scheme, the IIPDF programme will support the PSAs to create a shelf of bankable viable PPP projects.
• Funding under this scheme will be in addition to the already-operational Scheme for Financial Support to PPPs in Infrastructure, essentially a viability gap funding (VGF) scheme, notified in December 2020.
  • Under the VGF scheme, support is granted for PPP infrastructure projects that are economically justified but commercially unviable.

Details

• The IIPDF has been created with initial budgetary outlay by the Ministry of Finance, Government of India.
• For providing financial support for quality project development activities to the States and the Central Ministries a corpus fund titled ‘India Infrastructure Project Development Fund’ (IIPDF), with initial contribution of Rs. 100 crore is being set up.
• Although it is envisaged as a revolving fund and would get replenished by the reimbursement of ‘investment’ through success fee earned from successfully bid projects, should there be a need, it can be supplemented in subsequent years through budget support.
• The IIPDF would assist ordinarily up to 75% of the project development expenses.
• The assistance from IIPDF would ordinarily be in the form of interest free loan.
• On successful completion of the bidding process, the project development expenditure would be recovered from the successful bidder.

Objectives

• The IIPDF’s primary objective would be to fund potential PPP projects’ project development expenses including costs of engaging consultants and transaction advisor, thus increasing the quality and quantity of successful PPPs and allowing informed decision making by the Government based on good quality feasibility reports.
• The IIPDF will assist projects that closely support the best practices in PPP project identification and preparation as set out in guidance to be issued by the Department of Economic Affairs from time to time.

Shyama Prasad Mukherji Rurban Mission

Why in News?
Aibawk cluster in the Aizwal district of Mizoram has become the first cluster to be completed under the Shyama Prasad Mukherji Rurban Mission (SPMRM).

The need for the Rurban Mission

• According to the 2011 Census, India has more than 6 lakh villages while there are around 7,000 towns and urban centres. Out of a total population the rural population accounts for 69% and urban population 31%.
• About 70% of the population lives in rural areas and about 50% of the overall labour force is still dependent on agriculture that is not productive enough.
• The GDP (Gross Domestic Product) contribution of agriculture to the nation is only about 14% while for industries and services sector (employers of people living in urban areas), it is 26% and 60% respectively.
• Large parts of rural areas in the country are not stand-alone settlements but part of a cluster of settlements, which are relatively proximate to each other. These clusters typically illustrate potential for growth, have economic drivers and derive locational and competitive advantages.
• These clusters, once developed, can then be classified as ‘Rurban’. Hence taking cognizance of this, the Government of India, has launched the SPMRM, aimed at developing such rural areas by provisioning of economic, social and physical infrastructure facilities.

Shyama Prasad Mukherjee Rurban Mission (SPMRM)

• Undertaken by the Union Ministry of Rural Development, the Shyama Prasad Mukherjee Rurban Mission (SPMRM) focuses on cluster-based integrated development through Spatial Planning.
• SPMRM is a scheme launched by the Ministry of Rural Development (MoRD) in 2016
• The Mission leads to convergence of the schemes of Union Government and the State Governments which leads to overall development of the region in a planned and organized manner.
• The State Government identifies the clusters in accordance with the Framework for Implementation prepared by the MoRD.
• SPMRM is a Centrally Sponsored Scheme (CSS).
• The mission aims at stimulating local economic development and create well planned Rurban Regions.
• The mission aims to develop 300 Rurban clusters. The Niti Aayog has proposed that these clusters are to be extended to 1000 in 3 years.
• The Mission plans to develop Rurban clusters contiguously with the Gram Panchayats with a population of 25,000 to 50,000 in plains and 5,000 to 15,000 in desert and hilly areas.
• The Mission provides good employment opportunities, basic as well as urban facilities to rural India such as waste management, smart classrooms, piped water supply, Roads, Agro processing and value addition to primary produce etc., and therefore is critical for holistic development.
• A predecessor to SPMRM was the Provision of Urban Amenities to Rural Areas (PURA), announced in 2003.

Rurban Clusters

• There are 2 categories of clusters: Non-Tribal and Tribal.
• Rurban clusters are identified across the country’s rural areas showing increasing signs of urbanization – i.e., increase in population density, high levels of non-farm employment, presence of growing economic activities and other socioeconomic parameters.
• For the purposes of SPMRM, Rurban areas refer to a cluster of 15-20 villages having about 30 to 40 lakh population. The clusters will be geographically contiguous Gram Panchayats with a population of about 25000 to 50000 in plain and coastal areas and a population of 5000 to 15000 in desert, hilly or tribal areas.