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.         In accordance with Section 7(e) and 8 (e) of the NCRPB Act, 1985, NCRPB provides financial assistance to the constituent states and their implementing agencies for infrastructure development projects in the NCR and CMAs.

4.         Project needs to have the necessary administrative and financial approvals of the State Finance Committee / Board of IA / State Govt.

5.         The Borrowing / Implementing Agency should submit request for loan assistance in prescribed loan application alongwith three sets of Detailed Project Reports (including one advance copy to NCRPB) and a soft copy to the NCRPB Delhi through the respective NCR Planning & Monitoring Cells of the participating States. The Cells after appraising the project, in terms of its conformity with the Regional / Sub-Regional/Functional Plan and Master Plan of the town techno-eco feasibility of the project in the context of Regional Plan, submit the project report along with their Satisfactory Assessment Note to NCRPB Office.

6.         DPRs are also appraised In-house in the NCRPB for Planning/ESMS/Financial aspects.

7.         After appraisal the projects are taken up in the in the Project Sanctioning and Monitoring Group (PSMG-I) Meeting under the chairmanship of Secretary, Ministry of HUA for approval of financial assistance.

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. 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 instalment and counterpart share of State/agency alongwith Geo-tagged Photographs. NCRPB obtains project completion certificate alongwith information of assets created in the project, from the implementing agencies once the project ends.

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.