Schemes Managed by Maharashtra Urban Infrastructure Development Co. Ltd
-(MUIDCL)
Click Here to get the Broucher
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;
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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
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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 :
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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
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Obtaining / arranging funds from various sources for development of
PPP or Non-PPP projects
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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
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Promoting private and community sector participation in projects
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Initiating, financing and sustaining urban institutional reforms
through capacity building (Training and knowledge management),
efficiency improvements and demonstration projects
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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
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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
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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 :
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Carrying out technical and financial appraisal of the projects and the
borrowing agencies with the help of empanelled technical experts /
consultants / transaction advisors etc.
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Providing loan assistance in the form of Viability Gap Funding (VGF)
for PPP projects
-
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
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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 :
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Treasury management and appraisal of debt guarantee proposals with the
help of a panel of technical experts / consultants / transaction
advisors etc.
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Reducing the cost of capital by providing financial guarantee for debt
raised or providing any other form of guarantee
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Organizing credit enhancement mechanisms and formalising and
monitoring the Borrowing Agency level mechanisms such as escrow, loan
repayment fund etc.
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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.