RIDF.pdf

For Internal Circulation only 26 26...

For Internal Circulation only 26 26 : 36 : 36 UIN UIN IC No.142. SPD.11. 2022 30 June 2022 NB.SPD.HO/ 117 / B-123/2022-23 26 : 36 UIN ________________________________________________________ From : CGM, SPD, NABARD, HO, Mumbai. For : CGM/OIC, NABARD, All ROs / TEs ________________________________________________________ : d by de 26 26 a : 36 : 36 wnlo UIN UIN Do Master Circular on RIDF LY. N SEO ALU Please refer to our Internal Circular No 103.SPD.04.2021-22 dated 25 May RN TE 2021 on the IN above subject. We have since updated the6 Master Circular incorporating :55 the latest 2 2 : 36 0 6:4 instructions / circulars / clarifications issued UIN upto 30th June 02022. 24 /2 3/09 n2 51o 2. We hope the Master Circular would be of help8to 8.1.1 the Regional Offices in their day to day 6 2.1 functions related to activities under RIDF. 19 IP: rom af h arm 3 62 6 ravS 36 26 N: au : UI ri G UIN Sh (Dr. Rajiv Siwach) by : ed Chief General loa Manager d o wn D L Y. Encl:ON As above. U SE 62 6 L 3 NA UI N: ER INT 26 26 : 36 : 36 UIN UIN |Page  For Internal Circulation only MASTER CIRCULAR ON RURAL INFRASTRUCTURE DEVELOPMENT FUND CONTENTS 6 26 362 36 : : UIN Sr. No. Topic UIN Page No. 1 Genesis 1 2 Normative Allocation 2 3 Phasing 6 2 2 36 4 Eligible Activities : 2 UIN 5 Eligible Institutions 3 6 Loan Eligibility 3 7 Rate of Interest 3 8 Documentation/Security 4 9 Project Approach 4 by : d 10 Appraisal and Sanction of Proposals 4 de 26 26 a : 36 : 36 wnlo UIN 11 Sanctioning Committee 8UIN Do. LY 12 Cost Escalation 9 EO N US 13 Grounding of Projects N AL10 E R 14 Deletion/Withdrawal of Projects INT 10 15 Empanelment of Consultants 6 :55 11 3 62 :42 N: 4 06 16 Disbursements / Drawals UI 9/2 02 11 /0 17 Projects Yet to be Grounded n 23 12 51o 18 Repayment Period & Pattern.1 8.1 13.1 68 19 Discharging of TPNs 192 13 IP: m 20 Adjustment of Mobilisation af r o Advance 13 a rm 21 626 Monitoring of Projects Sh 14 26 : 3 u rav : 36 22 UIN Social Monitoring Ga 16UIN h ri S 23 State/Districty: Level Monitoring 16 e db a d 24 wCompletion nl o of Projects 17 Do 25Y. Tranche Completion Report 17 O NL SE 26 Management Information System 26 18 LU : 36 A ER N 27 Rural Infrastructure Promotion UIN Fund 18 INT 28 Annexure I - RIDF-Eligible Activities 21 29 Annexure II - Sequence of Addition of Activities 22 30 APPENDIX- I -List of circulars consolidated under RIDF 23 26 26 : 36 : 36 UIN UIN |Page  For Internal Circulation only 1. Genesis 26 26 The Government :3 6 of India had set up Rural Infrastructure Development Fund (RIDF) : 3 in 6 UIN UIN NABARD, during 1995-96, with the objective of providing low cost fund support to the States to facilitate quick completion of ongoing rural infrastructure projects, which were languishing for want of resources. The Hon’ble Union Finance Minister, while presenting the union budget for 1995-96 on 6 15 March 1995, had inter-alia, indicated as: 3under 62 : UIN “Inadequacy of public investment in agriculture is today a matter of general concern. This is an area which is the responsibility of the States but many States have neglected investment in infrastructure for agriculture. There are many rural infrastructure projects, which have been started but are lying incomplete for want of resources. They represent a major loss of : by potential26income and employment to the rural population”. 26 a de d : 36 : 36 wnlo UIN UIN Do Over the years, RIDF has emerged as a dependable source of public funding of impactful Y. O NL rural infrastructure projects. Assistance from RIDF constitutes a significant proportion US E of L investments by various State Governments in rural infrastructure sector.ERRIDF which N A started as a “last mile approach” to facilitate completion of ongoing irrigation, INT flood 5 protection and watershed management projects 26 during 1995-96, today 2:5 covers as many as : 36 0 6:4 39 activities (Annexure I) which are Ubroadly IN classified under 02 4 three categories as (i) 9/2 Agriculture and Related Sector, (ii) Social Sector and (iii) 23 Rural Connectivity. / 0 n 51o.18.1 The corpus has grown from Rs. 2,000 crore 2in.16 1995-96 (Tranche I) to Rs. 40,000 crore 8 1 9 in 2021-22 (Tranche XXVII). The cumulative IP: funding commitment, as on 31 March 2022 r o m to State Governments/ UTs stoodmat a Rs. 4.55 lakh crore (inclusive of Rs. 18,500 crore f ar under Bharat62 6 Nirman Programme).vS h As many as 7.46 lakh projects have been sanctioned 62 6 :3 ura :3 against UI which Rs. 3.58 lakh N ri G crore have been disbursed as of 31 March 2022. a UI N h y :S db After announcement loa de of corpus of RIDF tranche, RBI makes bank-wise allocations to the n corpus based D o w on the shortfall in achievement of priority sector / agriculture / weaker. section ON L targets by each bank. Under RIDF I, the fund was allocated from the shortfall in Y E 26 sector lending. From RIDF II to XIV, the sub-target LU S (18%) for agriculture under priority : 36 N A IN ER funds were allocated from shortfall in Upriority sector lending (40%) and/or agriculture INT (18%). From RIDF XV onwards, the allocation to RIDF is being met out of shortfall from priority sector and/or agriculture and/or weaker section. 26 26 : 36 : 36 UIN UIN |Page  For Internal Circulation only 2. Normative Allocation 2.1 The corpus announced for each tranche is allocated among different States as per “Normative Allocation” based on following parameters; 26 26 S.No. N: 36 Norms/Parameters Weightage N: 36 UI UI i Geographical Area of the States 10% 10% ii Rural Population 25% a. Share in National Rural Population 15% b. Rural Poverty Rate 6 10% 62 iii Composite Infrastructure N : 3 Development Index 15% 15% UI iv Priority Sector Credit Flow 30% a. Inverse of Rural CD Ratio 15% b. Inverse of Per Capita PS Credit 15% v Performance under RIDF 15% : by a. Average disbursements 10% de d 26 26 a : 36 : 36 wnlo UIN UIN Do b. Utilisation of Drawables 5%. NLY Average Sanctions for Agriculture including S EO vi 5% L U5% Irrigation and Drinking Water Projects ERN A INT TOTAL - - - - - - - - - - - - - - - - - - - - -- - - - - - - 5-5 100% 2 6 2: : 36 06:4 UIN 024 3. Phasing 9/2 3/0 n2 3.1 The implementation phase for projects sanctioned 51 o is spread over 2-5 years, varying 8.1 with the type of the project and also location of the 68 State. As against normal phasing period. 1 2.1 of 2-3 years, a phasing period of 4 years 1 is permitted for projects from North East 9 IP: (including Sikkim) and Hilly States fr (Jammu & Kashmir, Uttarakhand and Himachal o m ma Pradesh). The five years phasing Shis permitted for major & medium irrigation projects and a r 26 62 6 : 36 other stand-alone projects, u rav involving RIDF loan of Rs. 50 crore and above. :3 I N G a I N U U Shri y: 3.2 The phasingdeof d bprojects, sanctioned in second half of the financial year i.e., between o a 01st October wnand 31 March, is reckoned from 01 April of the subsequent financial year. l st st Do The worksY. can however be executed ahead of the schedule and reimbursements claimed NL accordingly. SE O 26 LU 6 A :3 RN UIN INT E 3.3 While Tranche I to XX have been closed, Tranches from RIDF XXI onwards are ongoing as on 31 March 2022. 4. Eligible Activities 4.1 Incomplete Irrigation, Soil Conservation, Watershed Management projects, etc. were financed under RIDF Tranche -I as a 'last mile approach' to facilitate completion of the 6 6 62 projects: 3delayed on account of budgetary constraints. Sanctions under the subsequent 62 N N :3 UI Tranches I of RIDF gradually covered a broad spectrum of activities which included,U among others, rural roads and bridges, buildings for primary schools and primary health centres, mini-hydel plants, rural drinking water projects, etc. At present a wide range of 39 |Page  For Internal Circulation only activities (Annexure I), covering almost all aspects of rural infrastructure are being funded under RIDF. 6 6 4.2 The eligible :3 62 activities are classified under three broad categories i.e., (i) Agriculture :3 62 N N and Related UI Sectors, (ii) Social Sector and (iii) Rural Connectivity. The sequenceUI of addition of new activities under each tranche is given in Annexure II. 5. Eligible Institutions 5.1 The institutions eligible under RIDF are 6State 26 Governments / Union Territories, State :3 Owned Corporations / State Govt. UUndertakings I N / State Government Sponsored Organisations and Panchayat Raj Institutions/ SHGs / NGOs. All proposals need to be routed through Nodal Department of State Governments concerned. 6. Loan Eligibility 6.1 The loan eligibility as percentage to eligible project cost in respect of activities by : d classified 6under three broad categories is as under: de 26 62 6 a :3 :3 wnlo UI Category N All States (other NE/Hilly States UI N Do than NE/Hilly Y. O NL E States) L US A Agriculture & Related 95% 95% TERN I N Social Sector 85% 90%5 6 :5 Rural Connectivity 80% :42 06 90% 62 :3 UIN 24 9/20 3/0 7. Rate of Interest n2 5 1o 7.1 The interest rates on deposits placed by the banks 8.1 8.1 and loans under RIDF is decided by 1 6 the Reserve Bank of India from time to time. 19 With effect from 01 April 2012, the interest 2. IP: rates payable to banks on deposits placed m with NABARD and loans disbursed by NABARD fro from RIDF have been linked toharthe ma Bank Rate prevailing at the time of placement / disbursement, 6 as the case may vS 6 ura be. 62 62 N :3 a N :3 UI ri G Deposit Rates UI : Sh Sr. Shortfall by in achievement of Rate of interest d ed No overall n loa Priority Sector Lending w Do. Targets N LY E O1 Less than 5 percentage points 6Bank Rate minus 2 percentage points US 3 62 NA L 2 5 and above but less than 10 IN : Bank Rate minus 3 percentage points ER U IN T percentage points 3 10 percentage points and above Bank Rate minus 4 percentage points Lending Rate 4 Loan disbursed from RIDF Bank Rate minus 1.5 percentage points 26 26 : 36 : 36 UIN UIN |Page  For Internal Circulation only 7.2 The margin available to NABARD in respect of RIDF loans shall remain at not more than 0.5% per annum. 7.3 If State Government fails to pay the interest on the due date(s), it shall be liable to pay 26 62 6 interest :on 36 the overdue interest amount at the same rate as is applicable to the principal :3 UI N UI N amount. 8. Documentation / Security 8.1 All loans sanctioned by NABARD under RIDF are secured by the irrevocable letter of 6 authority / mandate executed by State Govt.:3 62and registered with Reserve Bank of India / I N Scheduled Commercial Bank, which is Uthe Principal Banker to the State Government for repayment of the principal and/ or payment of interest to NABARD. 8.2 Submission of Time Promissory Note (TPN) in the prescribed format for each release of loan. : 8.3 Acceptance of terms and conditions (General & Special) of sanction (Letter no. d by 6 6 a de NB.SPD./54/B-123 :3 62 (RIDF-Gen)/2022-23 dated 05 May 2022). :3 62 wnlo UIN UIN Do. 9. Project Approach LY E ON RIDF funding is based on project based lending which entails submission ofL Detailed US A Project Reports (DPRs) containing technical and financial parameters, drawings, ER N maps, INT etc. submitted by the Implementing Departments. The concept of project approach was :55 adopted to ensure proper end use of funds,36completing 26 the projects 6 :42 in time and deriving : 40 anticipated benefits. UIN / 2 02 9 /0 n 23 10. Appraisal & Sanction of proposals 1o.15 10.1 Checklists for preparation / formulation of 8.18 RIDF projects in respect of agriculture & 6 2.1 related sector including irrigation, roads IP: 1& bridges as well as social sector have been 9 forwarded to the State Governments af r vide DO letter No.NB.SPD/1089/B.123/2005-06 o m dated 30 September 2005. a rm 6 2 Sh 6 2 : 36 urav : 36 UIN Ga 10.2 While firming uphrithe cost estimates, care needs to be taken to ensure that the UIN :S estimates are as per db ythe latest Schedule of Rates (SoR) indexed to the current year/ market d e rates and should l o a be prepared after detailed field survey. Identifiable items of capital o wn nature.areD only eligible for funding under RIDF. N LY EO 26 incurred on project preparation, cost of L U10.3 S Pre-appraisal expenses such as expenses36 : NA UIN0.5 % of the RIDF loan eventually sanctioned, ER technical surveys, etc., are allowed upto INT provided the same are outsourced. 10.4 Centage charges (as per rates fixed by State Government) are permitted, provided the works are executed by State-owned corporations and State-owned agencies (Circular No. 143/SPD -02/2009 dated 01 September 2009). 26 26 : 36 : 36 UIN UIN |Page  For Internal Circulation only 10.5 “Contingencies” are permitted upto a maximum limit of 3% of civil works under the project. 26 26 : 36 : 36 UIN UIN 10.6 An in-built provision for cost escalation over the updated cost as mentioned in DPR / Project report is also permitted. For projects having phasing up to 2 years - "up to 5% over the updated cost" and for projects having phasing of more than 2 years “up to 10 % over the updated cost" is allowed (Circular No. 182/SPD-4/2008 dated 15 October 2008). 26 : 36 UIN 10.7 Keeping in view the requirements, to ensure better quality control and supervision through specialised agencies, especially in the case of mega infrastructure projects, the expenses on account of Quality Control/PMC/Supervisory Charges/Third Party Monitoring upto a maximum of 2% of eligible project cost are considered under RIDF, wherever an external agency is engaged by State Governments for such works (IC No. 23.SPD.01.2020-21 dated 01 February 2021). : d by 6 6 a de 62 62 nlo 10.8 DPRs: 3 for the project proposals prioritised by State Government will haveN to : 3 be w UIN UI Do submitted to NABARD Regional Offices through the Nodal (Finance) Department of State Y. O NL Government. The DPRs should necessarily be submitted for all project proposals US E and L should include all necessary/required documents. The projects prioritisedERby NA the State T Governments should be completed in 2-5 years. The projects should be technically I N feasible 5 and economically viable. The Economic Rate 26of Return (ERR) should 2:5 be greater than 10 : 36 0 6:4 % and Benefit Cost Ratio (BCR) should Ube IN more than 1 at a discounting 02 4 factor of 10%. (HO 9/2 IOM No.SPD/1768/RIDF (Gen)/2019-20 dated 29 October 23 / 0 2019). The projects will be on appraised by the concerned Regional Offices for.15 technical feasibility and economic 1.18 viability. 2.1 6 8 19 IP: om r 10.9 The broad guidelines to be followed af for appraisal of projects and pre sanction field a rm visits are62contained 6 in IOM v SNB.SPD/86-114/B-123 (RIDF-Gen) 2006-07 dated36216 h 6 :3 ura : November UI N 2006 and ICri No.105/SPD-08/2022 G a dated 09 May 2022. The projects UI which N h are prioritised by the y State Government under the current tranche and are technically : S db feasible and loaeconomically viable need to be forwarded to HO with suitable d e wn recommendationDo for consideration of Internal Sanctioning Committee (ISC)/Sanctioning. Committee ON L Y of the Board (SCB). E 6 L US 3 62 NA N: ER 10.10 While appraising the projects, benchmark UI costs for major sectors as communicated INT vide IOM No. NB.SPD/50/RIDF –XXVIII(Gen)/2022-23 dated 02 May 2022 need to be kept in view. Suitable justifications for higher cost/very low cost of development, wherever applicable, need to be furnished in Draft Memorandum of Sanction (DMoS). 26 26 : 36 : 36 UIN UIN |Page  For Internal Circulation only 10.11 The cap for Rural Connectivity Sector (Roads and Bridges) is as indicated below (Circular No. 23/SPD-01/2019 dated 01 February 2019). 6 Category Cap 62 26 3 36 StatesN: UI with Rural Road length per 100 sq.km Upto 30% of NA UIN : greater than the National average States with Rural Road length per 100 sq.km Upto 40% of NA less than the National average 6 North Eastern States including Sikkim and :3 62 No Cap UI N Hilly States (Jammu Kashmir, Himachal Pradesh and Uttarakhand) States with notified LWE districts (AP, 50% of NA in general. Relaxation Telangana, Bihar, Chhattisgarh, Jharkhand, upto 75% of NA may be considered MP, Maharashtra, Odisha, UP & West for projects from LWE affected Bengal) districts only : d by States affected 26 by floods and other natural 50% of NA in general. Relaxation 26 a de 36 :3 6 nlo calamities : like earthquake, cyclone, upto 75% of NA may be considered Do w UIN UIN landslides, tsunami, etc. provided such for projects located in declaredNLY. O calamities have been declared by the disaster affected districts only USE L Competent Authority of the State Govt. RNA TE during the last 3 years IN 5 Further relaxation to States based on relevant 36 26 To be decided by:4the2:5 SCB on case to : 0 6 factors UIN case basis /2024 /09 n 23 1o (The sub sectoral cap of 10% for Bridges under Rural.15 Connectivity stands removed and 8.18 hence bridge projects may be covered within92the. 1 6 overall connectivity sector cap stipulated : 1 for different States/regions) m IP ro af arm 10.12 The362Social Sh Sector Cap r(excluding Rural Drinking Water Supply) is fixed at 15% 62of 6 6 av : a u :3 the total UI allocation under N ri a particular Tranche. The sub sectoral cap of 10% for Education G UI N Sh under Social Sectorbstands y : removed. (Circular No. 37/SPD-03/2019-20 dated 13 February ed 2020). loa d wn Do. Y 10.13 O NLProjects towards Major District Roads (MDR), Other District Roads (ODR) & Village SE 26 A L URoads (VR) are eligible for RIDF loan. State: 36 Highways and National Highways are not ER N eligible for funding under RIDF. Further,UIN road projects of less than one km are also not INT considered eligible for support under RIDF. State Governments are expected to use other sources of funds for such projects. (Circular No. 302.SPD-14.2020-21 dated 05 November 2020). 10.14 The norms as per Indian Road Congress (IRC) specifications shall have to be followed 3for62 road projects. The strengthening/ widening of roads to meet the increased 6 62 6 N : N :3 trafficUI intensity is also eligible for RIDF loan. Construction of new bridges asUIwell as replacement of existing old, damaged and narrow bridges are eligible for support. The specifications of such projects are required to conform to IRC/Ministry of Road Transport and Highways (MoRTH) norms. |Page  For Internal Circulation only 10.15 Bridge projects on State Highways in rural areas are also eligible for RIDF loan. 10.16 In case62 of road projects, provision of maintenance cost up to a maximum of 10% 6 62of 6 :3 :3 the project UI N cost can be capitalised in the project cost (IOM No. NB.SPD/1719/B-103/2013- UI N 14 dated 22 January 2014). A 5 years Defect liability period is mandatory for all road projects under RIDF from 01 April 2020. (IC No. 28.SPD–02.2019-20 dated 30.01.2020). 10.17 In case of Bridge Projects under Pradhan 62 6 Mantri Gram Sadak Yojana (PMGSY), the :3 pro rata cost required to be borne by theUI State Governments, could also be considered for N assistance under RIDF. No separate detailed technical appraisal needs to be carried out for these projects (IOM No. NB.SPD/54-82/B-123 dated 08 April 2006 read with Circular No.223/SPD-08/2010 dated 29 November 2010). Similarly, for Accelerated Irrigation Benefit Programme (AIBP) assisted major and medium irrigation projects (and minor irrigation where applicable), where the loan component is to be raised by State : Governments through borrowing, the States can seek support from NABARD under RIDF d by 6 6 a de (Circular: 3No. 62 121/SPD-4/2006 dated 02 August 2006). :3 62 wnlo UIN UIN Do Y. 10.18 In respect of irrigation projects, water courses / distribution system should normally ON L E be an integral part of the project. In case, it is not part of project, State Govt. USshould N AL indicate arrangements for On Farm Development (OFD) works so that water ER reaches the INT farmers’ fields. State Governments should be encouraged to submit55proposals for water 26 2: courses and distribution system with provision : 36 for lined or piped 0 6:4 systems to enhance 4 UIN water use efficiency. In respect of all ongoing major and medium 02 Irrigation projects where / 0 9/2 Inter-State aspects are involved / projects of Multi-purpose 23 nature, Central Water 1 on 1 5 Commission (CWC) / Niti Aayog clearance is required. 8.1 8. Wherever applicable, clearances 16 from Ministry of Rural Development (if Rehabilitation 19 2. & Resettlement is involved) and IP: Ministry of Environment, Forest roand m Climate Change are also required (IOM af No.NB.SPD/1439-1467/B-123/2006-07 ha r m dated 01 September 2006). 26 S 26 : 36 urav : 36 UIN Ga 10.19 Desilting of pondshr/i canals are more in the nature of periodic maintenance work and UIN :S should normally be db yundertaken by State Governments from own resources. However, in d e case desilting l constitutes an essential component of the project the same can be o a wn considered Doup to 15% of the project cost (IOM No. SPD.878/RIDF XXII (General) / 2016-. LY 17 dated ON 28 July 2016). E 6 L US 362 NA N: ER 10.20 The Environment and Social Policy UI of NABARD, is applicable to infrastructure INT projects with both loans and grants-in-aid beyond Rs.500 crore. Accordingly, the appraisal of such projects needs to cover the related environmental aspects. (Ref. No. Circular No 235/FSPD-07/2015 dated 04th November 2015). 10.21. Regional Offices need to prepare Draft Memorandum of Sanction (DMoS) as per the prescribed :3 62 6 format (IC No.105/SPD-08/2022 dated 09 May 2022). The DMoS :3 62 6 N N together UI with Annexures (I to V), checklist, appraisal/consultant report, rating Uchart I of the implementing department etc. have to be forwarded to Head Office. Revised checklist format circulated vide IC No.105/SPD-08/2022 dated 09 May 2022 may be used while forwarding the proposal to Head Office. The essential details required in DMoS / common |Page  For Internal Circulation only deficiencies observed in DMoS have been communicated vide IOMs NB.SPD/RIDF XVII (Gen)/2011-12 dated 25 November 2011, NB.SPD/RIDF XVIII/2012-13 dated 27 July 2012, IC no. NB. SPD.HO/ 296/ RIDF XXI (Gen)/ 2015-16 dated 10 June 2015, IOM 6 6 62 No.NB.SPD/46/RIDF –Appr Gen/2022-23 dated 28 April 2022 and IC No.105/SPD- 62 N :3 N :3 UI UI 08/2022 dated 09 May 2022. The DMoS and Annexures submitted by ROs are vetted at HO and after approval by Competent Authority, the same are placed before the Sanctioning Committee for consideration. 11. Sanctioning Committee :3 62 6 N 11.1 Eligible project proposals involvingUI loan amount of more than Rs. 300 crore are considered for sanction by Sanctioning Committee of the Board (SCB), a sub-committee of the Board of Directors of NABARD, with the following Members:  Chairman, NABARD  Deputy Governor of RBI on NABARD Board.  Director representing RBI Board, appointed u/s 6(1) (c) of the NABARD Act. : d by  Representative26 of GoI (Finance) on NABARD Board, appointed u/s 6(1)(d) of the 6 a de 36 62 nlo NABARD : Act :3 w UI N UI N Do  Representative of GoI (Agriculture) on NABARD Board, appointed u/s 6(1)(d) of Nthe LY. O NABARD Act L US E  Representative of GoI (Rural Development) on NABARD Board, appointed NA T ER u/s 6(1)(d) I N of the NABARD Act 5  Two representatives of State Governments 26 2:5 : 36 nominated u/s 6(1) 0 6:4(e) of the Act. 4  Managing Director, NABARD (Vacant UIN at Present) 02 / 0 9/2 23  Deputy Managing Directors, NABARD 1 on.15  Quorum for the meeting of SCB is 3 members 8.18 (out of which 2 should be from out of.16 those nominated under section 6(1)(c)/6(1)(d)/6(1)(e) :1 92 of NABARD Act). IP rom 11.2 Board of Directors have delegated af power to sanction proposals with RIDF loan size arm upto Rs.300 2 6 crore (except those Sh requiring relaxation in sectoral cap) to an Internal 6 6 v 62 :3 a ura :3 Committee UI N of NABARD ri named as Internal Sanctioning Committee (ISC) headed G UI by the N Sh Chairman. The minutes by : of the meetings of ISC shall be placed in the immediate next ed meeting of the loSanctioning a d Committee of the Board for loans under RIDF, for information wn (Circular No. D o 212.SPD.12.2020-21 dated 03 August 2020).. N LY EO L U11.3 S The proposals sanctioned by SCB/ISC 36 26 are communicated to Regional Offices : NA specifying the name of the projects, RIDF UIN loan sanctioned and terms and conditions ER INT stipulated by the Sanctioning Committee. Regional Offices are required to communicate sanction of projects to the State Governments. However, detailed Sanction letters are issued only after receipt of Administrative Approval for the projects sanctioned, as per proforma annexed to IOM No NB.SPD/70-98/B-123/2008-09 dated 21 April 2008, Circular No. 157/ SPD- 03 / 2008 dated 8 Sep 2008 read with Circular No. 158/SPD- 06/200936dated 26 25 Sep 2009. 36 26 : : UIN UIN 11.4 Sanction of projects to State Govts., will continue even when there is default by any Cooperative Bank. However, sanctions to be conveyed to such State Govt. will be subject to following specific condition. ROs are required to ensure that this specific condition is |Page  For Internal Circulation only stipulated in Schedule II of the sanction letter and is complied with while considering first drawal application for mobilization advance or loans (Circular No. 157/ SPD- 03 / 2008 dated 8 Sep 2008). 26 26 : 36 : 36 UIN “The State Govt. shall arrange to fully clear the defaulted amount of Rs.-------------by the UIN....................Bank due to NABARD on------------ in repayment of loan/payment of interest/ penal interest, guaranteed by the State Govt. before submission of the first drawal application for mobilization advance or loan under this project." This condition will cease to apply when the: 3default 62 6 specified therein is cleared. UIN 11.5 Modifications in the sanctioned projects can normally be permitted only with the consent of sanctioning committee and generally, shall not be encouraged as the approach under RIDF is project based. However, with a view to speeding up the work and avoiding delay, minor deviations / modifications, which do not affect scope and benefits accruing from the projects, may be permitted by Regional Offices. The deviations should be within : the broad parameters of the sanction and increase in cost, if any, shall be borne by the d by 6 6 a de 62 State Government. (NB.SPD/471/B-123/RIDF-Gen/1999-2000 dated 17 July 1999).: 362 nlo :3 w UIN UIN Do L Y. 11.6 In respect of type design projects, ROs are authorised to allow change of location ON of E sanctioned projects on valid reasons, within the same district and within the sanctioned US N AL R limit of RIDF loan under the same tranche. While allowing such changes, INT Ethe following may be ensured: 26 :55 i. Increase in project cost, if any, due to 3 6change of location shall 6 :42 be borne by the State : 40 UIN 02 Government /09 / 2 23 ii. Change of location of those projects, where 1 locations on have been specified, viz.,. 1 5 irrigation, roads, etc. may not be considered. 8.1 8.16 (Circular No. 254/SPD-06/2018 dated :1 9 08 October 2018) 2 IP rom af 12. Cost Escalation arm 6 Sh 6 12.1 An :inbuilt 36 2 provision forurcost a v escalation over the updated cost as mentioned in DPR : 3 is 62 N a N UI permitted. Accordingly, G riif required by the State Governments, such cost escalation UI upto : Sh 5%/10% over the updated by cost is considered eligible under RIDF for projects with phasing d ed of 02 years/ nmore l o a than 02 years respectively (Circular No. 182/SPD-4/2008 dated 15 ow October. 2008). D N LY EO 26 US 6 NA L 12.2 State Governments are required to meet N : 3 cost escalation, if any (apart from in-built), I ER U out of own resources. However, if cost escalation arises for certain genuine reasons, INT beyond the control of State Governments like (i) change in Schedule of Rates (SoR) (ii) Need based unforeseen changes in design and (iii) Land acquisition cost due to judicial intervention (restricted to 60 % of the cost of land acquisition), the same may be considered (Circular No. 59/01-2006 dated 10 April 2006). The proposal for cost escalation needs to be forwarded within 2 years from the date of sanction to be eligible for 6 6 62 62 consideration N :3 of additional loan (Circular No. 230/SPD-09/2010 dated 01 December N :3 UI UI 2010). |Page  For Internal Circulation only 12.3 The proposals having cost escalation up to 40% over original sanctioned cost or project involving sanction of additional RIDF loan up to Rs. 1 crore (in each case) over original sanctioned amount (whichever is less) shall be sanctioned by Chairman/MD 6 6 62 based on: 3recommendations 62 of technical/standing committee on cost escalation. All other N N :3 UI UI cost escalation proposals shall be sanctioned by Sanctioning Committee. Sanction letters for cost escalation are issued as per the format prescribed vide IOM NB.SPD/252- 280/RIDF-XIV/2008-09 dated 09 May 2008. 13. Grounding of Projects 62 6 :3 13.1 Time Frame for Grounding of Projects UI N is as under (Circular No. 57/SPD-03/2012 dated 14 March 2012):  Administrative Approval (AA) - Prior AA or AA within 1 month from the date of in- principle sanction.  Technical Sanction (TS) - Prior TS or TS within 3 months from the date of sanction. :  Tendering- Within 6 months from the date of sanction. d by 6 6 a de  Issuance :3 62 of work order – within 9 months from date of sanction. :3 62 wnlo I N UI N Do  U Grounding of project - within 12 months from the date of sanction. Y. O NL SE 13.2 It is expected that the Administrative Approval and Technical Sanction L U should R NA already be in place for the projects posed by the State/UT Governments forINsanction TE under RIDF. However, considering the practical difficulties 6 in certain cases, :55 it has been agreed 62 :42 that the ROs may continue to impress : 3 upon the State 4 0Governments to obtain 6 UIN 02 Administrative Approval prior to or within one month/0from 9/2 the date of in-principle 23 sanction. Further, based on merits of each case, requests 51 o n for granting extension of time up to 2 months beyond the stipulated period 6may. 1 8.1 be considered at the level of ROs in 8 respect of projects sanctioned under Tranche 9 2.1 XXVI and onwards. ROs shall record the 1 IP: specific reasons for which such requests r o m have been considered and make available the m af records for6 scrutiny as and when Sh a required. Requests for extension of time, beyond 3 r 6 2 v 26 months, : 3may be referred to uHead r a Office (Circular No. 120/SPD-07/2020 dated 29N :April 36 N a UI G UI 2020). hri :S y edb ad 14. Deletion/Withdrawal wn lo of projects D o 14.1 IfY.the sanctioned projects are not grounded (i.e. work order not issued) within a L period E ON of 18 months from the date of sanction letter, Regional Office may treat the projects S 26 L Uas deleted/withdrawn after obtaining approval : 36 of CGM/OIC. The details of such projects A ER N UIN IN T may be forwarded to Head Office as per prescribed format. However, this must be done as a last resort after exhausting all possible measures to ground the project/s. Any outstanding amount (including mobilisation advance disbursed) under the projects proposed for deletion / withdrawal should be recovered/ adjusted, before deletion. (IOM No.NB/SPD/192-220/RIDF XIV (Gen)/2008-09 dated 08 May 2008 and Circular no. 125/SPD-09/2022 dated 07 June 2022). 6 6 62 62 :3 :3 14.2 Further, UI N requests for deletion/withdrawal of RIDF projects may also be considered UI N from the concerned State governments due to various other reasons viz., due to non- receipt of necessary clearances, lack of land availability, delay in issue of Administrative Approval (AA)/Technical Sanction (TS), etc. Regional Office may forward such proposals |Page  For Internal Circulation only to Head office for deletion/withdrawal of such projects in the prescribed Memorandum of Sanction (MoS) format together with a copy of the Nodal Department’s letter, recommending deletion/withdrawal of projects. Any outstanding amount including the 6 6 mobilisation :3 62 advance disbursed under the projects proposed for deletion/withdrawal, :3 62 N N UI be recovered/adjusted and expressly mentioned in the Memorandum of Sanction UI should (MoS), before forwarding the proposal to HO. (Circular No.84/SPD.2/2006 dated 13/06/2006 and Circular no. 125/SPD-09/2022 dated 07 June 2022). 15. Empanelment of Consultants 62 6 :3 15.1 Consultants may be empanelledUIby Regional Offices to help in appraisal and N monitoring of projects, besides capacity building of Officers. The consultants may be identified from locally available retired Officers having relevant experience from government/semi-govt. organisations of the State/Centre, voluntary organisations of experts, etc. who would be available to the Regional Office at short notice. : by 15.2 Honorarium Payable to consultantsTop level (CE or Equivalent, Rs.5000 de d 6 6 a NABARD 62 Officers retired in Grade E/F) per diem 62 nlo :3 :3 w UI N UI N Do Senior level (SE or Equivalent, NABARD Officers retired in Grade D) Y. NL Middle level (EE or Equivalent NABARD Officers retired in Grade Rs.3000 E O L US A/B/C)