The Government of Tamil Nadu has constituted the Tamil Nadu Infrastructure Development Fund (TNIDF) for providing financial support to facilitate the design, development, functioning and management of projects.

The Fund can also be used to provide financial support for projects undertaken under the public private partnership mode in the following forms:

1. Subsidy or capital grant during the construction period of the project intended to improve the viability of the project

2. Operational grants during the operational period or part thereof of the project

3. Annuity payments for a specified period in the life of the project

4. Equity investment in the entity implementing the project, including a special purpose vehicle created for the purpose

5. Loans to the entity implementing the project, including a special purpose vehicle created for the purpose

6. Any other form of project financing which the Government may notify from time to time

Financial support from the TNIDF shall constitute assistance from the State, under the Act. The total financial support from the TNIDF for a particular project in any of the forms, including annuity payments, shall not in the aggregate exceed 20 per cent of the Total Project Cost. In the case of projects where the Board itself is the procuring entity and sponsoring agency, such financial support, excluding annuity payments, shall not exceed 40 per cent in the aggregate of the Total Project Cost.

Financial support from the TNIDF shall ordinarily be approved only after the opportunities to avail State support and other public financial support from the sponsoring agency's own resources or regular departmental budgetary resources or Central Government support have been exhausted. Such application shall be made in the format contained in Appendix 2 of the TNIDF FORMS