Muinfra

Maharashtra Urban Infrastrucure Development Company Limited
...Catalysing growth through urban infrastructure

   
 
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Schemes Managed by Maharashtra Urban Infrastructure Development Co. Ltd -(MUIDCL)

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The MUIDCL has the mandate to help Urban Local Bodies (ULBs) and other Project Implementing Agencies (PIAs) in improving urban and environmental infrastructure (which includes water supply, sewerage and sanitation, solid waste management, solid and liquid waste and effluent treatment plants, roads, bridges, flyovers, by-passes, storm water drainage, street lighting, traffic and transportation systems, area development, public markets, slum improvement, health and education, sports and recreation, fire fighting, , energy saving in urban infrastructure projects, projects under Clean Development Mechanism etc.) by utilizing the following:-

1). Project Development Fund (PDF) Scheme
Developing projects including those based on PPP;
Advising Project Implementing Agencies (PIAs) including ULBs regarding project financing and assisting them in raising funds from various sources;
Providing loan assistance to PIAs for development of projects;
Building capacities of ULBs and PIAs; and
Providing policy support to the State Government and collaborating with the State Govt. in development of urban infrastructure

Under the PDF Scheme, the MUIDCL would help the agencies in the following tasks :

  1. Preparing bankable infrastructure projects with the help of a panel of technical experts / consultants / transaction advisors etc. or providing interest free or soft loans / grants (depending on the finances of the Agency) for development of PPP-based or other types of urban infrastructure projects
  2. Obtaining / arranging funds from various sources for development of PPP or Non-PPP projects
  3. Facilitating access to institutional finance and / or capital market for projects and advising the agency on the activities required for improving credit-worthiness of the agency
  4. Promoting private and community sector participation in projects
  5. Initiating, financing and sustaining urban institutional reforms through capacity building (Training and knowledge management), efficiency improvements and demonstration projects
  6. Carrying out studies and assisting the Government of Maharashtra and the State agencies in benchmarking, policy analysis, design of sector strategies, system development, model guidelines and information management
  7. Providing support for policy reforms to the Government of Maharashtra.

In cases, where the MUIDCL develops projects or helps agencies in obtaining finance, the costs incurred on these activities are to be recovered from the concerned agency along with a success fee as a proportion of project development cost to be decided based on the nature of the project, subject to a ceiling of 25% of the project development cost. The interest-free or soft loans provided for project development are also to be recovered from the Agency as per the tenor and rate of interest decided by the MUIDCL in the light of the financial condition of the Agency as assessed by the MUIDCL. In case of default in the repayment towards the project development cost or success fee or towards repayment of loan and interest, the MUIDCL would request the State Govt. to intercept the grants payable by the Govt. to the concerned Agency.

2). Project Finance Fund (PFF) Scheme
This fund aims at providing loan assistance for execution of PPP and Non-PPP projects
Under the PFF Scheme, the MUIDCL would borrow and lend funds for priority urban infrastructure projects to the agencies, which find it difficult to directly raise funds from the financial institutions or capital market. The MUIDCL would assist the Agencies under this Scheme as follows :

  1. Carrying out technical and financial appraisal of the projects and the borrowing agencies with the help of empanelled technical experts / consultants / transaction advisors etc.
  2. Providing loan assistance in the form of Viability Gap Funding (VGF) for PPP projects
  3. Providing loan assistance towards substantial cost funding of Non-PPP projects

The amount of loan assistance will depend on the extent of funding admissible to the project from other sources, including grant from the Government under any Scheme or Programme, and would be subject to the funding pattern of the Scheme or Programme. The interest rates on the loans offered would vary depending on the Class of the Municipal Councils and the Municipal Corporations, the nature and priority of the projects and also on the cost and tenure of borrowing by the MUIDCL.
A tripartite loan agreement between the MUIDCL, the Borrowing Agency and the State Government will be executed. The loan, along with interest, processing fee, commitment charges and delayed payment charges, if any, would be recovered as per the terms of the Tripartite Agreement. In case of default in the repayment of loan, interest or any other dues, the MUIDCL would request the State Govt. to intercept the grants payable by the Govt. to the concerned Agency.
The Loan Application Form can be downloaded from the MUIDCL website – www.muidcl.com.

3). Debt Service Reserve Fund (DSRF) Scheme
This funds has been set up to provide financial guarantees for raising loans from other agencies.

Under the DSRF Scheme, the MUIDCL would provide guarantees for loans in the following manner :

  1. Treasury management and appraisal of debt guarantee proposals with the help of a panel of technical experts / consultants / transaction advisors etc.
  2. Reducing the cost of capital by providing financial guarantee for debt raised or providing any other form of guarantee
  3. Organizing credit enhancement mechanisms and formalising and monitoring the Borrowing Agency level mechanisms such as escrow, loan repayment fund etc.
  4. Exploring and using other mechanisms to substitute or supplement direct guarantees provided under the DSRF Scheme

In cases, where the MUIDCL provides guarantees, a fixed fee in proportion to the debt guaranteed will be charged. In case of invoking of guarantee and related payment, such amount paid will be recovered along with interest. In case of default in the payment towards such guarantee payments made by the MUIDCL and the guarantee fee, the MUIDCL would request the State Govt. to intercept the grants payable by the Govt. to the concerned Agency.

Thus MUIDCL is positioned to facilitate the entire process from identification of priority projects to their preparation, funding and execution

 
 
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