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.
