Planning and projection will be in sharp focus in an increasingly competitive environment while determining costs and benefits in NVGF road projects. M Murali helps us understand what variables constitute a framework of factors while doing so.Compared to the public sector, private sector firms have a better structure of incentives and sanctions, and stronger motivation to earn good returns on the investment. The private sector also has greater flexibility in adjusting its resources - personnel, equipments and materials-to constantly changing circumstances. Private firms optimise resource allocation in the initial construction and the later operation and maintenance (O&M) phases. This is the philosophy behind the success of Public-Private Partnership (PPP) in infrastructure.Government of India has established a Viability Gap Fund (VGF) to aid the infrastructure projects under PPP that face a gap in projected revenues simply because charges may not be levied on the general public or cannot be recovered adequately. The VGF Scheme administered by the Ministry of Finance provides financial support in the form of grants, one-time or deferred, with a view to make them commercially viable.REVERSE FUND FLOWUnder Negative VGF, or Premium, the payment from the constructor can be either in the form of an upfront premium or revenue share. Better efficiencies and better flexibility to manoeuvre financial ups and downs mean that wherever there is scope for financing a project through direct user-fee, investors can use toll-fee more efficiently to recover their money. In some cases, reallocation of risk has the potential to lower overall costs for the society.Variables for premium: The following project variables are likely to help determine project viability.