PIIF

    Punjab Infrastructure Initiative Fund (PIIF) is a corpus of Rs. 20 crores and the key objectives of the PIIF are to :-
  1. Accelerate the process of infrastructure development & privatization.
  2. Develop a shelf of investible projects through Project identification and Development
  3. Create a superior model for the privatization process.
  4. Channelise international experience in project definition.
  5. Set objective/transparent criteria.
 Funding Mechanism

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The PIDB is funded through Rs. 1 per liter Fee on Petrol, and 1% Fee on all agricultural produce except fruits, vegetables and pulses, which works out to approximately Rs. 170 crore per annum. This amount constitutes the Punjab Infrastructure Development Fund (PIDF) which is spent on:
  1. Augmentation of existing infrastructure;
  2. Punjab Governments contribution to equity in priority infrastructure projects; and
  3. Establishment of the Punjab Infrastructure Initiative Fund (PIIF) with a corpus of Rs. 20 crores
The year wise fund inflow of Fee is :

Fee Collected (Rs. In crore)

1999-002000-012001-02 2002-03 2003-04 2004-05 2005-06 2006-07 
2007-08 

2008-09

(upto Mar 31, 2009)
86.5383.4788.99 155.32 161.49 197.19 186.87 170.97 188.14 538.95

Total actual receipt of Infrastructure Development Fee till 31st March 2007 has been about Rs. 1131 crores. With effect from April 1, 2008, FEE on all agricultural produce except fruits, vegetables and pulses has been enhanced to 2% for every hundred rupees for primarily funding a Mega Irrigation Project and other Infrastructure Projects for the benefit of the persons engaged in farming and other agriculture related activities.

Pursuant to obtaining a credit rating of A- (SO) from CARE Ltd. and BBB + (SO) from ICRA Ltd., PIDB came out with its 2nd Bond Issue in the month of July, 2007. The Bond Issue of Rs.150 crores closed successfully with PIDB collecting Rs.150 crores. The amount of Rs. 150 crores is to be used for funding the on-going (i.e. already awarded) projects.

In the month of December 2007, PIDB came out with its 3rd Bond Issue in the form of Zero Coupon Redeemable Non-Convertable Deep Discount Bonds (2007 Series-II). The Bond Issue of Rs. 499.93 crores also closed successfully. The amount of Rs. 499.93 crores is to be utilized for financing the on going Infrastructure Projects in the State of Punjab.

From the period between December, 2008 to February, 2009 PIDB came out with its 4th Bond issue in the form of Regular Return Bonds 2008 – Series IV-A, IV-B, IV-C totaling to Rs. 750 crores. Through the 1st tranche i.e. PIDB Bonds 2008 Sr. IV-A, PIDB was able to raise Rs. 252 crores. Through the 2nd tranche i.e. PIDB Bonds 2008 Sr. IV-B, PIDB was able to raise Rs. 442 crores and through the 3rd tranche i.e. PIDB Bonds 2008 Sr. IV-C, PIDB was able to raise Rs. 56 crores.

Funds released for projects during 2002-03 to 2008-09 :

Table attached

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