Date: 02-01-2018
L&T needs VGF’s (Viability Gap Fund )
• To speed up the project the L&T has been facing the financial problem from central government.
• The project is waiting for Viability Gap Fund (VGF) from Central government.
• In October 2017 the VGF eligibility is to issue Rs 246.59. But, due to the delay the funds were released in November 2017 of Rs 154.02 crore and the remaining balance is Rs 92.67 crore.
• As the project is getting delayed L&T also requested the Union Finance Minister to release the funds immediately. In remaining five months the central has to release Rs 157.66 crore.
• So far L&T has invested Rs 13,310.39 crore on the project. Already the commercial banks has to release the funds of Rs 1,700 crore. Several commercial banks has sanctioned Rs 9,905.78 crore for the project but, has only released only Rs 8,181.59 crore up to October 2017 end. Interest paid by L&T was Rs 2,499.34 crore.
• In the current financial year central government has released Rs 957.54 crore up to October 2017 towards VGF. L&T has to be received balance amount of Rs 256.79 crore towards the VGF from central government up to July 2018.
• The details of disbursement up to October 2017 i.e the certificates issued by the auditors & the SBI are passed to the government.
