The Latest Circulars

RURAL INFRASTRUCTURE DEVELOPMENT

1. Eligible activities

1. Rural Roads
2. Rural Bridges
3. Minor Irrigation Projects/Micro Irrigation
4. Soil Conservation
5. Flood Protection
6. Watershed Development/Reclamation of waterlogged areas
7. Drainage
8. Forest Development
9. Market Yard/Godown, Apna Mandi, rural haats and other marketing infrastructure
10. Cold Storage, Public or Joint Sector cold storage at various exit points
11. Seed/Agriculture/Horticulture Farms
12. Plantation and Horticulture
13. Grading and Certifying mechanisms such as testing and certifying laboratories etc.
14. Community irrigation wells of irrigation purposes for the village as a whole
15. Fishing harbour/jetties
16. Riverine Fisheries
17. Animal Husbandry
18. Modern Abattoir

2. Phasing (Period of Completion)

Maximum phasing period of three years i.e. upto 31 March 2007 will be allowed for projects sanctioned under the tranche.

3. Quantum of Loan

Loans will be available as per the following norms for sectors covered under
RIDF-X :

4. Type of Projects

Priority would be given to ongoing projects. In case of new projects, only short duration projects which could be completed within 3 years would be considered.

5. Cut Off Date

Expenditure incurred on or after 01 April 2004 only would be eligible for reimbursement. However, pre-appraisal expenses such as expenses incurred on project preparation and cost of detailed technical surveys, incurred prior to the cut-off date, may be reimbursed subject to a ceiling of 0.5% of RIDF loan sanctioned, provided such work has been outsourced.

6. Nodal Department

Finance Department (FD) of the State Government would continue to be the nodal department for documentation, drawal of funds, etc.

7. Mode of Funding

NABARD would release the sanctioned amount on reimbursement basis. However, if the State Government desires, NABARD may consider releasing as advance such amounts as per the norms applicable from time to time, so as to enable State Government to commence implementation of the project without any delay. Advances sanctioned in respect of projects which remain as non-starter even after six months of availing the advance, shall be recovered / adjusted against other eligible claims of the State Government.

8. Rate of Interest on loans

The State Government will be required to pay interest on loans from RIDF-X as per the rate conveyed in the sanction letter of the project concerned. The lending rate will be fixed at Bank Rate (prevailing at the time of sanction of loan) plus 0.5 percentage point.

9. Repayment period of loans

Each drawal by the State Government would be treated as a separate loan and would be repayable in 7 years with a grace period of 2 years, i.e., each drawal would be required to be repaid in five equal annual instalments after the grace period of 2 years during which interest will be payable.

10. State Infrastructure Plan based on bottom up approach

The officials of the concerned State Government departments may be advised to liaise with the DDMs of NABARD at the district level to evolve a broad-based district level infrastructure plan after consultation with the line Departments and in tune with the district potentials and priorities. This could be further aggregated at the State level and submitted to NABARD before April 2005 for operationalisation during the year 2005-06.