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PROJECT DEVELOPMENT GRANT FUND (PDGF)

The Government is providing technical assistance grant for taking up consultancies / studies to support Urban Local Bodies (ULBs) and other institutions owned or managed by Government. The funding sources are from the externally aided projects assisted by International Bank for Reconstruction and Development (The World Bank), German Development Bank (KfW), Japan International Cooperation Agency (JICA) and by Government of Tamil Nadu (GoTN).

The Government of Tamil Nadu has created Project Development Grant Fund (PDGF). The PDGF is a non lapsable fund created to provide technical assistance to support ULBs and other institutions owned or managed by Government for providing various consultancy services in the State of Tamil Nadu. The Fund is operational from 1st April, 2015. The Fund is managed by Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL).

OBJECTIVES:

The PDGF is technical assistance grant to support consultancy assignments for creation of urban infrastructure, provision of urban facilities and services, up-gradation of the living standards of urban population and improvement in the delivery of urban services to such population. The PDGF will be used provide grant to carry out consultancy assignments, to operate and manage resource mobilisation programs and to carry out capacity building & development and training.

FUND SIZE, SOURCE & ALLOCATION

The corpus for the Fund will be provided by Government of Tamil Nadu through various sources as detailed below:

  • The external aided projects assisted by World Bank, KfW and JICA through annual budgetary allocation, based on the lines of credit in operation.
  • Plough Back of Government of Tamil Naduís share of Tamil Nadu Urban Development Fundís (TNUDF) interest on units.
  • The external aided projects assisted by World Bank, KfW, JICA and such other funding institutions through annual budgetary allocation, which may be availed from time to time.
  • The transfer of available funds from Grant Fund-II under TNUDP III, KfW Grant Fund ĖII under SMIF-TN Program, SMIF-TN-II-2 Program, JBIC Grant Fund-II under TNUIP and Project Preparatory Grant Fund to the PDGF.
  • The interest from deposits, investments and any other income earned or accruing to the PDGF shall form part of its corpus and shall be applied for the objective for which the Fund is created.
  • Other sources and means as ordered by the Government form time to time.

ELIGIBILTY CRITERIA

All categories (Corporations, Municipalities and Town Panchayats) of ULBs in the State of Tamil Nadu, Statutory Boards, Government Departments and other institutions owned or managed by Government of Tamil Nadu, Tamil Nadu Urban Development Fund (TNUDF), Water and Sanitation Pooled Fund (WSPF) are eligible to avail technical assistance grant.

The PDGF will finance the costs of technical assistance to the eligible applicants with respect to all eligible assignments which will lead to creation of urban infrastructure, provision of urban utilities, facilities and services, up-gradation of the living standards of urban population and improvement in the delivery of urban services to such population in the State of Tamil Nadu.

Technical assistance under PDGF shall not exceed (i) 10% of the total allotment of the respective source of fund to any single proposal and (ii) 20 % of the total allotment of the respective source of fund allocated to any single eligible applicant (all proposals of the eligible applicant).

APPLICATION AND APPRAISAL

Application for technical assistance grant by the eligible applicant shall be submitted to TNUIFSL. Council Resolution / Board resolution for availing grant assistance, details of consultancy assignment and additional information as may be required have to be provided along with the application.

TNUIFSL would process the application in-compliance with of the guideline, need for the assignment, suggested terms of reference (ToR) for the proposed assignment, quantum of the grant required for the proposed assignment, modalities for execution of the assignment, other conditions to be satisfied by the applicant for the successful completion of the assignment and recommendation on taking up the assignment with the funding under PDGF.

SANCTION AND DISBURSEMENT OF GRANT

The recommendation of TNUIFSL shall be considered by the Technical Sanctioning Committee for approval. Based on the approval of the Technical Assistance Sanctioning Committee, TNUIFSL shall initiate the process of procuring the consultant for carrying out the assignment, based on the modalities prescribed.

TNUIFSL shall intimate the details of technical assistance grant sanctioned to the applicant along with the conditions to be adhered / satisfied by the applicant for successful completion of the assignment. TNUIFSL will execute / carry out the assignment on behalf of the applicant. The ownership of the assignment vests with the applicant and the applicant shall make necessary arrangements for the best use of the outcome of the assignment. The applicant shall commit to initiate further course of action based on the outcome of the assignment.

Based on progress of the assignment, the grant shall be disbursed to the respective consultant(s) in one or more installments, from PDGF after due diligence.

PROCUREMENT PROCEDURES

Procurement procedures for the assignments shall be in accordance with the guidelines prescribed by / agreed with the funding agency.

In the case of assignments which are not covered above the procurement procedures as prescribed under Tamil Nadu Transparency in Tenders Act, 1998, Tamil Nadu Transparency in Tenders Rules, 2000 and Tamil Nadu Transparency in Tenders (Public Private Partnership Procurement) Rules, 2012 (amended up to date) shall be adhered to.

PERFORMANCE DURING 2017-18

A sum of Rs.21.74 crores has been received from Government during the financial year 2017-18 and a sum of Rs.13.21 crores has been disbursed to various consultancy assignments during the financial year 2017-18.