National Capital Region Planning Board
( MINISTRY OF HOUSING AND URBAN AFFAIRS, GOVERNMENT OF INDIA )
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Project Financing

Mandate

1.         Section 7 of the NCRPB Act, 1985 lays down the functions of NCRPB. In terms of section 7(e), one of the functions of the NCRPB is to arrange for, and oversee, the financing of selected development projects in the National Capital Region through Central and State Plan funds and other sources of revenue. Further, as per section 8 (e) of the NCRPB Act, the Board can select and approve comprehensive schemes and provide assistance for the implementation of these schemes.

2.         The Board under the provisions of the above sections has been providing soft loans for various projects prepared and submitted by the state government agencies within the National Capital Region and Counter Magnet Areas with the over-arching goal of achieving the balanced development of the Region.  These projects cover wide spectrum of Basic Infrastructure Development, Sewerage, Drainage and Solid Waste Management, Water Supply, Power, Transport, Social infrastructure like Hospitals and others. 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 presently provides long term loan of 10 years tenure with two years moratorium in payment of principal and the loan carries interest rate as prevailing at the time of disbursements.

Sanction Process & Procedure

3.         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 project reports submitted by the implementing/executing agencies are scrutinized to ensure conformity with Regional Plan Policies/programs by NCR Cells of the respective states and also in the office of NCRPB. DPRs are also appraised with the assistance of outside experts on the following parameters

  • Technical feasibility,
  • Quality of structural design
  • Reasonability of cost estimates & Economic Viability
  • Impact on environment
  • Rehabilitation and statutory compliances

4.         For this purpose, NCRPB has entered into contract with outside professional national level institutions as consultant to the Board for appraisal of Detailed Project Reports in various infrastructure sectors. The Sector-wise consultants who are partners in rendering advice on technical and financial viability of a project are as follows:

S. No.

Infrastructure Sub-Sectors

Empanelled National Level Institutions 

I

Water Sub-Sector- Bulk water supply, Water Distribution, Water Conservation

  • Engineers India Ltd.
  • Water and Power Consultants.

National Environmental Engineering Institute

II

Sanitation, Effluents, LCS, Drainage and Solid Waste Disposal - Sewage Treatment Plants, Sewage Lines, Storm Water Drainage, Low Cost Sanitation, Solid Waste disposal

  • Engineers India Ltd.
  • Water and Power Consultants.
  • National Environmental Engineering Institute

 

III

Transportation-Transport Facilities, Roads, RoBs, Flyovers, Bye-passes

  • Engineers India Ltd.
  • Central Road Research Institute

 

IV

Power Sector  

  • Engineers India Ltd.
  • Water and Power Consultants.

V

Land development & Housing projects

  • Engineers India Ltd.
  • National Building Construction Company
  • Hospital Services Consultancy Company

V.

Social infrastructure dispensaries, hospitals, school and colleges.  In site slum rehabilitation and resettlement schemes sports infrastructure
 

  • National Building Construction Company
  • Hospital Services Consultancy Company

 

5.         The appraisal process undertaken by the above institutions generally examines following aspects

  • The projects meet the present and future requirements of the town/ area in terms of services and utilities,
  • The specifications of technical parameters are sound, realistic and technically feasible,
  • The cost estimates are prepared as per the latest PWD/CPWD Common Schedule of Rates (CSR)  or scheduling rates specified by various Central / State regulatory authorities for specific projects of the respective States, and are reasonable
  • The project as a whole is financially & economically viable,
  • The implementing agency has sound organizational capacity to execute the project as per the implementation schedule given in the report, and
  • The environmental impacts and social safeguards, if any, are being taken care of, to minimize any adverse impact. (DPR should address to social and environmental impacts with mitigation measures.  Special attention is required to be paid to the services to poor and the vulnerable including those require to be resettled. 

6.         The appraisal process is an interactive process (amongst implementing agency making the loan request, NCRPB officials, National Institutes appraising the Detailed Project Report of the Project) which leads to filling of missing gaps and revision of DPRs. After completion of this process, the consultant submits appraisal report to NCRPB.

7.         On receipt of final appraisal report from NIs the projects are taken up in the Project Sanctioning & Monitoring Group(PSMG) of the Board. The Board of NCRPB has delegated powers to PSMG to sanction loans including release of instalments as per loan drawal schedule for the projects.

Disbursement Procedure

8.         After sanctioning of the project in the PSMG meeting, loans are released on submission of various documents such as Loan Agreement, Security Document viz. State Govt. Guarantee, Bank Guarantee and Escrow Agreement and Mortgage of Property in lieu of State Government/Bank Guarantee.   In case of loan to the State Government, an undertaking is obtained for providing adequate budget allocation towards repayment of loan installment and interest thereon every year till the payment of final installment is made by them.

9.         Loans are disbursed as advance payments throughout the project period. The first advance is made immediately after the loan agreements and security documents are signed. The next advance is made based on projection made in the DPR, and only after obtaining the ‘Utilization Certificate” for the previous installment. Every tranche is treated as a separate loan, and therefore approvals are obtained from PSMG and separate agreements are entered for each tranche. NCRPB monitors the progress of the projects through monthly/quarterly progress reports and by visiting respective sites before release of subsequent installments. NCRPB obtains project completion certificate from the implementing agencies once the project ends and carries out final verification of work done and expenditure incurred on the completed projects.


Constitution of Project Sanctioning & Monitoring Groups of the Board

 

The Project Sanctioning & Monitoring Groups (PSMG) of the Board have been constituted to identify individual projects against schemes approved by the Board for funding by the Board, to release installments for the same and for carrying out a constant review of the progress of the projects, the functions, powers and duties of the Board are delegated to the Group.

PSMG-I

Gazette Notification

K-14011/13/85-NCRPB dated 8.7.1985

Constitution

 

Secretary

Ministry of Urban Development

Chairman

 

Financial Advisor

Ministry of Urban Development  [in place of Secretary (Expenditure), as per decisions of the 2nd Board meeting held on 20.11.1985]

Member

 

Advisor

Planning Commission or his representative

Member

 

Joint Secretary

In-charge of NCR in the M/o UD

Member

 

Secretaries

In-charge of the NCR States and Delhi U.T.

Member

 

Chief Planner

TCPO, New Delhi

Member

 

Member Secretary

NCR Planning Board

Convener

Powers

To sanction projects

Projects with an estimated cost of over Rs. 5 Crs.

 

To commission surveys & studies on behalf of the Board

Above Rs. 20 lakhs ( amended as per decisions of 29th Board meeting held on 24.05.2006)

PSMG-II

Gazette Notification

K-14011/13/85-NCRPB dated 27.2.1997

Constitution

 

Member Secretary

NCR Planning Board

Chairman

 

Joint Secretary (Finance)

M/o Urban Development or his representative

Member

 

Representative

M/o Urban Development

Member

 

Representative

Planning Commission

Member

 

Secretary

In-charge of the NCR States and Delhi U.T.

Member

 

Joint Director (PMC)

NCR Planning Board

Convenor

Powers

To sanction projects

Projects with the estimated cost up to Rs. 5 Crs.

 

To commission surveys & studies on behalf of the Board

Up to Rs. 20 lakhs ( amended as per decisions of 29th Board meeting held on 24.05.2006)

 

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