6.1  The central assistance for all projects shall be released in two instalments in a financial year. 

 

6.2  Release of First Instalment 

 

6.2.1  For projects receiving assistance upto 50% of project cost, the  first instalment of central Share in a financial year equal to 90% of central share provided in the Annual State Budget, shall be released after submission of a certificate, duly signed by  the concerned Principal Secretary  to  the effect  that the State has released at least 50% of its State Share  to the project as provided in the Annual State Budget. 

 

6.2.2  For projects receiving assistance higher than 50%, the  first installment of central Share in a financial year  equal  to  50%  of  central  share  provided  in  the  Annual  State  Budget  shall  be  released  after submission of a certificate, duly signed by  the concerned Principal Secretary  to  the effect  that  the State has released full State Share  to the project as provided in the Annual State Budget.

 

6.3  Release of Second /Subsequent Installment (s)

 

6.3.1  In the Same Financial Year - Balance/Second  instalment of GOI share  in  the same  financial year shall  be  released  on  submission  of  (i) Utilisation Certificate  in GFR-19  (A)  (Format  enclosed)  for utilization  of  50%  of  Central  Share  released  earlier  in  the  same  financial  year,  (ii)  due recommendations  of    the Monitoring  Agency  based  on  the  monitoring  report,  (iii)  corresponding budget provision made by  the State both  in  respect of  the  central  share as well as  the matching state share and (iv) submission of certificate, duly signed by the concerned Principal Secretary that the State has released its full State Share to the project, provided in the Annual State Budget. 

 

6.3.2  In the Next / Subsequent Financial Year - Next year instalment of GOI share in the next financial year shall be released on submission of (i) Utilisation Certificate in GFR-19 (A) (Format enclosed) for utilization of full Central Share released earlier (ii) due recommendations of  the Monitoring Agency based  on  the  monitoring  report,  (iii)  corresponding  budget  provision  made  by  the  State  both  in respect of  the central share as well as  the matching state share and  (iv) submission of certificate, duly signed by the concerned Principal Secretary that the State has released its State Share to the project, provided in the Annual State Budget. 

 

6.4  REIMBURSEMENT OF EXPENDITURE

6.4.1  The central assistance towards the expenditure incurred by the State Governments on a scheme in the  previous  financial  year(s)  before  its  approval  by  the  IMC-FMP  would  not  be  entertained.  However,  actual  expenditure  incurred  by  the State Governments  from  their  own  resources  in  the financial year (in which  the scheme  is approved by  the  IMC-FMP or  in a year after  the approval of project  by  IMC-FMP  under  FMP)  would  be  reimbursed,  in  such  cases,  requirement  of  budget provision in the year of reimbursement  may not be necessary.

 

6.4.2  In  case  of  a  claim  of  reimbursement,  a  certificate  towards  actual  expenditure  incurred  will  be submitted  by  the  State  Government  duly  countersigned  by  Principal  Secretary/  Secretary  of concerned department (Water Resources/ Irrigation/ Public Works Department).

 

6.5  If  the  project  authority  fails  to  adhere  to  the  completion  schedule  (as  indicated  in  FMP-I)  or  the  extension granted by IMC-FMP and is unable to complete the project in scheduled time, further central assistance after the scheduled completion period (from next financial year) shall not be released to the State Governments and the State shall bear the remaining cost of the project from its own resources. 

 

6.6  If  the  project  authority  fails  to  adhere  to  the  completion  schedule  due  to  non-release  of  central assistance  in  the  planned  time  for  any  reason,  the  state  government may  revise  the  construction schedule after receipt of the first instalment and intimate to the Ministry of Water Resources for record in performa (FMP-1), in order to avoid attracting the provision of Para 6.7. 

 

6.7  However, any revision of cost of project or its schedule of construction required to address the  flood problem / erosion / bank failure subsequent to preparation of DPR, would be considered by IMC-FMP on merits  on  the  basis  of  justification  by  State,  views  of  appraisal  agency  and  revised  investment approval by Planning Commission.

 

6.8  The Utilization Certificate  in  FORM GFR-19A  (enclosed)  shall  be  issued  by  the  concerned Chief Engineer  and  the  financial  authority;  and  countersigned  by  the  concerned  Secretary  of  the implementing  department  /  Finance  Secretary  of  the  state  government.  In  case  of  work  being implemented by the Central Government Organizations/ Undertakings, the utilization certificate may be countersigned by the Head of organization/ undertakings.

 

6.9    Release of central assistance would be based on the recommendations of the Monitoring Agencies as  specified  in  the  subsequent paragraphs.  The Monitoring Agencies would  inspect  the works, at least  once  in  every  financial  year,  to monitor  overall  quality  of works,  technical  specification  and progress  at  site  before  recommending  further  releases.  If  the Monitoring  Agencies  are  unable  to complete  the  second  visit  before  the  end  of  financial  year;    subsequent    instalments  in  the  next financial  year  would  not  be  held  up  on  account  of  non-completion  of  second  field  visits  by  the  monitoring teams and in such cases, the 1st  instalment in the next financial year will be released on receipt of

(i) utilization certificate in GFR-19A of the earlier release(s) including matching state share,

(ii) due recommendations of the Monitoring Agency based on physical and financial progress of the work  submitted  in  the  prescribed  format  viz.  FMP  -2  &  3  duly  certified  by  the  concerned  Chief Engineer  from  the State,

(iii)  annual  budget  provision made  by  the State  and  (iv)    submission  of certificate , duly signed by the concerned Principal Secretary that the State has released its full State Share, provided in the Annual State Budget, to the project .   

 

6.10   States  would  be  required  to  submit  audited  statements  of  expenditure  incurred  on  the  works executed  with  central  assistance  under  the  scheme within  nine months  of  the  completion  of  the financial year. The  releases of central assistance  in  the  following year will not be considered  if an audited statement of expenditure is not furnished within stipulated period.