What kind of funding arrangement is sometimes used in SAMPADA to attract private investment?

• A. Blended funding with private investment
• B. Entirely government funded with no private capital
• C. Only loan-based funding
• D. Grants-in-aid only

Answer: (A)

Blended funding with private investment is used because SAMPADA projects need large capital and private investors often hesitate due to risk and long timelines. By mixing public funds (grants, subsidies, or guarantees) with private capital, the scheme improves bankability—sharing risk, signaling government support, and sometimes providing early-stage subsidies or risk relief. This leverage makes it feasible for private entities to participate, enabling bigger, more efficient food processing infrastructure than could be funded by public money alone. Purely government funding wouldn’t attract private capital, and relying only on loans or grants-in-aid doesn’t create the same incentive or leverage for private investors.