As per section 7(e) of NCRPB Act, 1985, the NCR Planning Board is also responsible to arrange for and oversee financing of selected development projects in the NCR and in Counter Magnet Areas. In fulfillment of its mandate, the NCR Planning Board has been playing a significant role in the development of infrastructure in the National Capital Region by financing infrastructure development projects selected under powers vested in it by section 8(e) of NCRPB Act, 1985. These projects cover wide spectrum of Basic Infrastructure Development, Sewerage, Drainage and Solid Waste Management, Water Supply, Power, Transport, Hospitals and others.
The infrastructure development projects financed by the NCR Planning Board are submitted by the Constituent States and NCT of Delhi and their development authorities, urban local bodies and other para-statals. The pattern of loan assistance provided by the NCR Planning Board is 25:75; 25% being the borrowing agency’s contribution and a maximum 75% of the project cost being the loan from the NCR Planning Board. The Board provides long term loan of 10 years tenure with two years moratorium in payment of principal and the loan carries interest rate of 8.25% or 9.50% p.a. In addition, the Board also provides rebate for various performance parameters.
The Board has a creditable loaning performance as it has recorded 100% recovery. The Board’s financial operations have been rated by CRISIL & ICRA and it has secured rating of “AAA” and LAAA respectively with stable outlook rating for its bond issues. This is the highest level of rating given by these rating agencies.