The union cabinet on Tuesday aligned the definition of the term "private sector company" to that in the guidelines for the Viability Gap Funding Scheme (VGF Scheme) for PPP projects.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the change in definition in the guidelines for financial support to infrastructure public private partnerships (PPP) under VGF Scheme.
As per the new definition, private sector company is to mean a company which is not a government company.
A "government company" is defined under Section 2 (45) of the Companies Act, 2013 as: Any company in which not less than 51 percent of the paid-up share capital is held by the central government, or by any state government or governments, or partly by the central government and partly by one or more state governments, and includes a company which is a subsidiary company of such a government company.
Approval has also been given to the finance minister to approve any amendment to the scheme that does not result in any material alteration to it, so as to enable making of quick changes to meet the economic challenges thrown up by the changing economic situation.