The Prime Minister's Committee on Infrastructure has cleared the special purpose vehicle (SPV) for funding infrastructure projects. The proposal will now be forwarded to the Cabinet Committee on Economic Affairs (CCEA) for a final go-ahead and the SPV is likely to take off by December.

The SPV, which aims at disbursing about USD 2.32 Billion for various infrastructure projects, is likely to take shape in about a month after it gets the CCEA nod. The SPV's major focus will be public as well as public-private partnership projects in roads, ports, airports (Mumbai and Delhi) and rail freight corridor.

Announced in Budget 2005-06 by the Finance Minister, the SPV will have an initial paid-up capital of USD 2.32 Million. The authorised capital has been fixed at USD 232 Million.

The details of the SPV will be made public after the CCEA clearance. It is believed that the framework for the SPV will be flexible enough with an option for refinancing existing projects.