Operational Guidelines

Transmission & Distribution Projects

Rural Electrification Corporation Ltd

September 2015
 INDEX

S.No Particulars Page No

1. Operational Guidelines for T&D Projects 2

2. Policy for financing against Regulatory Assets 18

3. Format for Appraisal of T&D Projects (ZO/PO) 22

4. Benefits and IRR Calculation 24

5. Guidelines for Monitoring of T&D Schemes 25

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 GUIDELINES FOR APPRAISAL, FINANCING AND DISBURSEMENT OF LONG
TERM LOANS FOR TRANSMISSION & DISTRIBUTION PROJECTS

1. The guidelines

These guidelines are for the purpose of project formulation, appraisal, financing and
disbursal of long term loans by REC under the Transmission & Distribution (T&D)
category.

These guidelines provides the framework for funding the creation of infrastructure and
system improvement of transmission, sub-transmission and distribution systems and
also covers the Renovation & Modernisation of the system to improve its operational
efficiency. It also supersedes all guidelines issued earlier in this regard viz. guidelines
for System Improvement Schemes, Guidelines for Bulk Loan Schemes, Guidelines for
Intensive Electrification and Guidelines for Special Project Agriculture (SPA), Financing
norms for transmission EHV & Guidelines for cancellation, withdrawal and closure of
schemes.

These guidelines shall be applicable for projects of State sector utilities

(Discoms/Transcos/Integrated SEBs/Power Departments), Central sector utilities,
CPSUs, private sector distribution companies and distribution utilities under state
regulators.

2. Definition: Transmission and Distribution Projects

Distribution Projects are those projects which pertain to the utility involved in distribution
business (Discoms) in case of unbundled utilities. For integrated utilities/power
departments, projects pertaining to system voltages upto 66 KV will be classified as
distribution projects.

Transmission Projects are those projects which pertain to the utility involved in
transmission business (Transcos) in case of unbundled utilities. For integrated
utilities/power departments, projects pertaining to system voltages above 66 KV will be
classified as transmission projects.

3. Objectives

a) Broad objectives of the Distribution projects shall be:

i) AT&C Loss reduction.

ii) Improving the quality and reliability of power supply.
iii)Enhancing operational efficiency.
iv) Providing access of electricity to all households.
v) Providing adequate system support and strengthening of system for load
development in the project area for the future years.
vi) Improving the metering, billing and collection.

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 vii) Introduction of innovative technology such as computerization, IT related
projects, SCADA, communication, R&D, smart grid, ERP, AMR, AMI etc.
viii) Energy Audit
ix) Customer Relationship management and Grievance Redressal
x) Renovation & modernization (R&M) of the system
xi) Energy Efficiency and Conservation

b) Broad objectives of the Transmission projects shall be:

i) Improving the quality and reliability of the transmission system

ii) Providing for adequate redundancy in the system
iii) Establishment of evacuation system for generating projects
iv) Strengthening of the network including new substations/ lines and their
augmentation/ up gradation
v) Renovation & Modernization (R&M) of the system
vi) Improving the operational efficiency of the system
vii) Communication and automation which includes computerization, IT related
projects, load dispatch, SCADA, communication, ERP etc.
viii) Energy audit.
ix) Improving the stability of system

4. Categories of projects under T&D:

All projects will be covered under the two major categories of Transmission or
Distribution. Sub categories under each category are as below:

a) Distribution:

(i) System Improvement (SI)

 Creation/Augmentation of sub-stations/ lines at different voltage levels
 High Voltage Distribution System (HVDS)
 Feeder Separation (FSP)
 Renovation & Modernisation of old/obsolete/worn out equipment.
 Projects aimed at reducing the technical losses in the system and also
improving the operational efficiency of the system.

(ii) Bulk Procurement & Installation of equipment/materials like meters, transformers,

conductors, cables etc. (Bulk Procurement-Bulk)

(iii) Infrastructure for providing electricity access to various categories of Consumers

including Agriculture (Intensive Electrification- IE)

(iv) Projects approved under various Central Govt. Schemes e.g. R-APDRP,
DDUGJY, IPDS etc

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 (v) Schemes related to AT&C loss reduction, innovation & best practices in
distribution sector (Inn/BP/AT&C)

(vi) Works relating to Energy Audit e.g. consultancy assignment for energy Audit,
implementation of recommendation of Energy Audit etc.(EA)

(vii) Implementation of IT enabled system/Computerization and Automation works

including ERP/SCADA/GIS mapping/smart grid, AMR, AMI etc.
(SCADA/IT/ERP/DMS/AMR/AMI)

(viii) Energy Efficiency and Conservation projects(EE&C)

(ix) Financial assistance against Regulatory Assets as per REC policy for financing of
Regulatory Assets (RA). Detailed policy of financing against Regulatory Assets is
enclosed as Annexure-I.

(x) Equipment required for Research laboratories, testing facilities including mobile
testing facilities, Training Centers, Customer Care Centers.(Labs/testing/training
centre/Customer care)

(xi) Office/Residential buildings, buildings for training centres, customer care centres,
testing labs, stores etc subject to (i) utility certifying that the expenditure is part of
capital expenditure filed/being filed with regulator and (ii) mortgage of concerned
land in favour of REC (Buildings)

(xii) Any other works not covered above but fulfilling the objectives of these guidelines
as per merits of the case (Misc).

Note 1: The existing SPA category of scheme is being merged under the category- Infrastructure for
providing electricity access to various categories of Consumers including Agriculture (Intensive
Electrification).

Note 2: The abbreviations in brackets are for denoting the class category or sub category in ERP and for
internal use of REC.

b) Transmission:

(i) System Improvement(SI)

 Creation/Augmentation of sub-stations and lines

 For implementation of specific schemes for system stability/reliability e.g.
Islanding schemes etc.
 Renovation & Modernisation of old/obsolete/worn out equipment.
 Other specific works for operational efficiency improvement of the system,
innovation & best practices in transmission sector

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 (ii) Bulk Procurement & Installation of meters, transformers, EHV Cables, tower
material etc (Bulk Procurement-Bulk)

(iii) Works relating to study and implementation of Energy Audit (EA).

(iv) Implementation of IT enabled system/Computerization and Automation works

including ERP/SCADA (SCADA/IT/ERP)

(v) Equipment required for Research laboratories, testing facilities including

mobile testing facilities, Training Centers, Customer Care Centers
(Labs/testing/training centre/Customer care)

(vi) Office/Residential buildings, buildings for training centres, customer care

centres, testing labs, stores etc subject to (i) utility certifying that the
expenditure is part of capital expenditure filed/being filed with regulator and (ii)
mortgage of concerned land in favour of REC (Buildings).

(vii) Schemes related to innovation & best practices in transmission sector (Inn/BP)

(viii) Any other works not covered above but fulfilling the objectives of these
guidelines as per merits of the case (Misc).

Note: The abbreviations in brackets are for denoting the class category or sub category in ERP and
for internal use of REC.

5. Detailed project report

a) The Detailed project report (DPR) for each proposal shall include (but not limited
to) the need & justification of the projects, objectives, detailed works with cost
along with the basis, details of execution with time frame, mode of execution,
status of administrative approval, requirement and status of regulatory/ statutory
and non- statutory approvals, land availability, details about involvement of forest
land and financial analysis.

b) For system improvement schemes, the formulation of the scheme by the utility
shall be done justifying the load growth, improvement of voltage regulation,
reduction of technical losses and to provide quality and reliable power to the
existing and prospective consumers. The parameters based on which the
schemes have been formulated and benefits envisaged to be accrued from the
implementation of the scheme, viz. additional sale, loss reduction etc. needs to
be indicated in the DPR. For other categories of schemes also, the benefits
envisaged to be accrued shall be suitably quantified and indicated.

c) The processing note of the project / zonal office shall be as per the format
enclosed at Annexure II.

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 d) In case of augmentation / up- rating projects, where old equipment are being
replaced, the utility may adjust the balance depreciable value in the total project
cost. However, if the old equipment are to be used for other locations/stored as
spares, the utility may opt not to reduce the balance depreciable value from the
project cost. A certificate to be furnished by the utility regarding end use of such
replaced equipment.

e) Spares and T&P shall be considered as part of the project cost for sanction,
subject to the ceiling of 3% of the project cost (or as per CERC/SERC norms).
However, the disbursement shall only be considered against the identified spares
within the overall ceiling sanctioned.

f) Right of Way: Compensation of crop / tree cutting, road crossing, railway

crossing etc, charges for statutory clearances or any other associated charges as
approved by the competent authority of the utility shall be permitted in the cost
estimates.

g) All centages like erection/labour, transport, storage, insurance, tax, supervision,

regulatory expense etc. need to be identified and values as approved by the
competent authority of the utility may be considered. Other expenditures against
overheads and contingency as approved by the competent authority of the utility
may be considered limited to 15% of the cost of the project.

h) Loss of stock, unidentified miscellaneous expenditure shall not be permitted.

i) In case of Bulk Procurement and Installation projects, each proposal shall be

prepared for procurement of only similar equipment/materials (Example,
Distribution transformers, power transformers, meters, conductors etc). However,
one scheme can cover similar equipment/material of varying specifications
(example various capacities of transformers, different sizes of conductors etc).

j) In case of turnkey projects, if award cost(s) exceeds the sanctioned loan amount,
the utility has the option to request for enhancement of loan to meet the
increased award cost, which will be considered by REC within its policies and
guidelines. Or else, the reimbursement from REC would be restricted to the
sanctioned loan amount.

k) In case of turnkey projects, any administrative cost or establishment charges or

overheads on the part of the utility, shall be eligible for reimbursement from REC
(over and above the award cost), subject to (i) the utility taking approval for the
same at the time of sanction, (ii) utility certifying that the same would form a part
of the capital cost of the project as approved by the regulator, (iii) approval for
extent of such overheads by Director/Board of utility.

l) In case of private distribution companies the proposed capital expenditure is to

be approved by Regulator.

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6. Entity Appraisal:

a) State Sector / CPSU / Govt. Sector: The grading shall be as per latest entity
grading circular issued by REC for determining exposure limits and interest rates.
If the utility is not covered in the circular, the grading shall be done on receipt of
proposal.
b) For identified CPSUs for which REC interest rate circular provides for special
grade and interest rate, entity grading shall not be required to be carried out
during approval of the projects.
c) Private Sector Distribution: The utility shall be reviewed and rated by Entity
Appraisal Division, on receipt of any proposal. The grading carried out shall be
valid for a period of one year.
d) State Governments/Power Departments- In case of loans to State
Governments and Power Departments directly under State Governments, interest
rates as applicable for A and B category would be applicable, even in case of
their grading being C. However, such borrowers who are graded as A+ will
continue to get the benefit of interest rate as applicable for A+ category.
However, for determining the maximum permissible exposure limit for such
borrowers, the actual grading would be applicable.

7. Cost data:

a) For Departmental execution projects: The projects will be formulated by the

utilities based on their latest approved schedule of rates. If there is a variation in
the cost adopted in the project compared to the schedule of rates, the borrower
should give justification for the same in the DPRs. Where the utilities have not
formulated the latest schedule of rates, the cost as per the latest purchase orders
can be adopted. Alternatively, in such cases, the old approved schedule of rates
with permitted escalation as per utility’s norms may be used.

b) For partial turnkey projects (where works are awarded in different packages
and a portion of work is also executed departmentally): For the non-turnkey
portion of the project, the methodology as in departmental execution may be
used. For the turnkey portion, the actual award cost of the various packages may
be used. In case projects are not awarded at the time of posing the projects for
sanction, the last awarded rates or latest schedule of rates may be used for
formulation, with permitted escalation as per utility’s norms.

c) For total turnkey projects: The actual award cost of the various packages may
be used for formulation and sanction of the projects. In case projects are not
awarded at the time of posing the projects for sanction, the last awarded rates or
latest schedule of rates may be used for formulation, with permitted escalation as
per utility’s norms.

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8. Extent of applicability for private sector distribution projects:

These guidelines shall be applicable for the private sector distribution projects in respect
of formulation of projects, appraisal, sanction, loan disbursement, documentation,
monitoring and closure etc. However, the private sector borrowers shall pay the
processing and upfront fees as applicable as per REC policy. Also, in case of private
sector borrowers, REC shall reserve the right to engage Lenders Legal Counsel,
Lenders Independent Engineers and Lenders Financial Advisors if found necessary, the
cost of which shall be borne by the borrower.

9. Processing fees, upfront fees and commitment charges:

State and Central Sector borrowers are not required to pay any processing fees. Also,
they are not required to pay any upfront fees or commitment charges for loans
sanctioned up to Rs.500 crores. However, for loans sanctioned beyond Rs.500 crores,
the state/central sector borrowers have the option to pay either upfront fees (0.1% of
loan amount) or commitment charges at rates as per prevalent policies of REC in this
regard. The commitment charges would be applicable on the extent of under drawal
from the quarterly drawal schedule furnished by the borrower, initially at the time of
documentation and subsequently before the start of every FY.

Private sector borrowers are required to pay processing fee at the rate of 0.1% of the
loan amount (subject to a minimum of Rs.5 lakhs and maximum of Rs.30 lakhs). 50% of
the processing fee has to be paid at the time of submission of loan proposal. Balance
50% shall be paid before issue of sanction letter. Private sector borrowers shall also pay
upfront fee at the rates as below depending on their grading:

S.No Grade Upfront fee as % of

loan amount
1 Grade I & II 0.10%
2 Grade III & IV 0.20%
3 Grade V 0.25%

10. Bulk Procurement & Installation projects:

a) The projects shall invariably be formulated by the utilities on the basis of the
purchase orders placed for the equipment. The cost of the equipment considered
shall be the FOR stores rate (supply rate plus freight plus insurance). If there is a
variation in the cost adopted in the project compared to the rates as above,
borrowing utility shall give reasons for the same in the DPR. The eligible project
cost under these schemes is only the cost of the material/equipment, however,
the last 10% of material/equipment cost shall be released after the utility certifies
that the equipment has been installed.

b) Where the utilities have not yet placed the purchase order for the equipment at
the time of formulation, the cost as per the latest purchase orders can be

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 adopted. Alternatively, in such cases, the old approved schedule of rates with
permitted escalation as per utility’s norms may be used.

c) Reimbursement would be based on the actual invoice value of the equipment

irrespective of the sanctioned unit rate of the concerned equipment, provided the
overall disbursement against the scheme is within the total loan sanctioned
amount.

d) Utility shall provide a certificate that equipment proposed to be funded under this
category will not be financed under any other category of project financed from
REC/other lenders.

e) Annual Ceiling limits for sanction of Bulk procurement and Installation

schemes:

The annual ceiling for sanction under the category of Bulk procurement for each
utility shall be as follows:

S.No Grade as per REC entity Annual sanction

grading circular as on limit
application date/Applicable
grading for the utility for
interest rate purpose
1 A+ Rs.500 crore
2 A Rs.400 crore
3 B Rs.300 crore
4 C Rs.250 crore

In case of Single Discom like Maharashtra, West Bengal, Tamil Nadu etc. the limit for
Bulk loan shall be 150% of above applicable limits.

11. Project Implementation Period

Execution of the project shall be completed within the project implementation period
agreed at the time of the sanction (maximum 3 years for all categories of Transmission
& Distribution projects). However, the project implementation period may be extended
beyond the agreed time if desired by the utility, by the competent authority as per latest
delegation of powers, amended from time to time. Project implementation period is
reckoned from the date of first release by REC and disbursements shall be made during
the implementation period (original or extended). However, for the works completed
during the implementation period, claims can be submitted by the utility up to three
months from the completion of the project.

The moratorium period for all T&D loans shall be three years from the date of first
disbursement, irrespective of the implementation period. However, higher moratorium

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periods can be granted on case to case basis, based on request of utility with proper
justification.

12. Extent of financing:

S.No Cases Loan as % of project

cost
In case of integrated SEBs for all their schemes
a. Up to 90%
irrespective of the size of the scheme.
In case of project cost exceeding Rs.100 crore
b. for all the state power utilities (other than Up to 90%
integrated SEBs) / CPSUs.
In case of project cost up to Rs.100 crore for all
c. the state power utilities (other than integrated Up to 100%
SEBs) / CPSUs.
Upto 40% of the
d. For IPDS/DDUGJY projects
project cost
D:E ratio based on
e For private sector
entity grading

It is clarified that for (a) and (b) above, where the loan is already restricted to 90% of
the project cost, there may be no further reduction in case the security offered is
“Hypothecation of future assets”. Likewise, for (c), the loan will be restricted to 90%
if security is by way of hypothecation of future assets. In case of (d), as per
guidelines, the loan component is 30% of the project cost. However, if the utility
desires, the 10% of state/utility contribution can also given as REC loan.

13. Deviation proposals

a) For other than Bulk procurement schemes:

Approval for deviation during the course of execution of the project shall be required
for change in scope of works, quantity and rate, within the overall sanctioned loan
amount and shall not be construed as approval for reduction in loan amount. All such
deviations needs to be technically justified, fulfilling the objectives of the project. The
project shall also continue to be viable as per stipulated norms, taking into account
the deviation.

Addition of new work not related to the project shall not be considered if it is with the
sole objective of compensating for the decrease in loan sanctioned due to deviations
as above.

Change in location of the sub stations & routes of lines, redistribution of works within
the Circle/ divisions/sub divisions and change in specification of material/equipment
used within the same item/class of work, if technically justified, and in line with the

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 original objective of the project, shall not be construed as deviation, subject to no
increase in financial commitment of REC.

In case the award cost of the project is less than the sanctioned project cost, only the
disbursement (in the same debt equity ratio) shall be restricted based on award and
further increase in cost due to Price Variation in award within the original sanction
shall not require any deviation approval. The changes shall be informed by P.O. /
Z.O. to the T&D Division and Claims Division.

b) For Bulk Procurement schemes:

Approval for deviation during the course of execution of the project shall be required
for change in quantity and/or rates of sanctioned equipment/material of a particular
specification beyond +/-25% of the original sanction, and for any addition of the
same equipment/material of new specification. The deviation shall be subject to loan
remaining within the overall sanctioned loan amount, and deviation approval shall
not be construed as approval for reduction in loan amount. Such deviations shall be
technically justified and required for fulfilling the objectives of the project. The
difference in sanctioned and invoice rate, as well as quantity within the limits of +/-
25% shall not be treated as deviation, subject to no increase in financial commitment
of REC.

All changes/deviations from original sanction of REC shall be in the form of

corrigendum to the original sanction letter.

c) Common for all schemes- Any increase in loan amount if required on account of
the deviations will be treated as request for additional loan and will be dealt with
accordingly.

14. Tenure of loan:

a) Distribution Projects: Loan repayment shall be 10 years or 12 years in addition

to moratorium of 3 years (3+10 years or 3+12 years) based on requirement of
borrowing utility.
b) Transmission Projects: Loan repayment shall be 10 years, 12 years or 15 years
in addition to moratorium of 3 years (3+10 years or 3+12 years or 3+15 years)
based on requirement of borrowing utility.

The above tenure of loan shall also be applicable for Bulk Procurement and Installation
schemes under both categories.

15. Cost Escalation:

a) Provision for cost-escalation up to a maximum of 20% of the project cost may be

considered at the time of sanction, if desired by the borrower. This will be
applicable for projects being executed departmentally/ Turnkey /partial turnkey

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 mode. However, the Viability shall be tested on the capital base including 20%
cost escalation.

b) If actual cost becomes higher than the sanctioned amount during execution, the
borrower will have the option to revise the project cost on the basis of actual
expenditure incurred and seek the approval of the corporation for revised project
cost, giving proper financial justification.

c) The undrawn portion of the loan including provision of cost escalation shall not be
considered for inclusion of additional works unrelated to the project.

16. Interest During Construction (IDC):

Interest During Construction (IDC) shall be considered for sanction, irrespective of size
and quantum of loan of the project. The IDC shall be paid as per actuals and shall be
considered only if approval has been taken at the time of sanction.

17. Financial Viability:

a) For Distribution projects - The project shall be considered viable if it yields

Financial Internal Rate of Return (FIRR) which shall be more than the rate of
interest applicable/proposed to be offered to the borrower for the project at the
time of appraisal. The Viability calculations shall normally be based on the
quantifiable benefits which would accrue to the utility after implementation of the
project, like additional sale of energy, technical and/or commercial loss reduction,
improving the reliability and quality of power etc. For various categories of
projects, quantifiable benefits as applicable could be considered, with suitable
justifications and calculations, wherever applicable/available. The capital base for
calculation is the cost of the project including cost escalation charges, if any.

The indicative methodology/format for calculating the benefits due to the project
and its financial viability is given in Annexure –III.

b) Projects exempt from Viability calculation:

(i) For Distribution projects of Bulk Procurement & Installation no viability is

required to be calculated.
(ii) For R-APDRP/IPDS/DDUGJY projects, the sanction by nodal agency
including the financial viability if any shall be accepted for sanction by REC.
(iii) For projects supported directly/indirectly by the State/Central Government for
the social/economic benefit of any class/segment of people, or for any project
with similar purpose as decided by the competent authority of REC on case to
case basis, the viability is not required to be worked out.
(iv) Also, for projects for introduction of innovative technology such as
computerization, IT related projects, Smart Grid, AMR, AMI, load dispatch,
SCADA, communication, GIS, R&D, inter utility meters, DT meters, ERP,

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 R&M projects under distribution which involve change in conductors, insertion
of poles, replacement of insulators, change in breakers, other hardware etc.
and for projects relating to energy audit, study, evaluation, consultancy etc.
the viability is not required to be worked out.
(v) Further, in case of transmission projects, it is mandatory for the projects to
be posed/approved by the State regulator. Hence, the viability is not required
to be worked out.

18. Non Starter Schemes

a) If no disbursement has been made against a scheme upto a period of one year
after documentation, the scheme shall be considered as non-starter, and ZO/PO
needs to follow up with the utility for either its cancellation, or for revival. In case
the ZO/PO is satisfied with the explanation/justification given by the utility that
progress will be made and reimbursement claims will be submitted by the
borrower, the scheme may be revived by ZM/CPM and reimbursement claims
admitted as and when received upto two years after documentation. However,
approval as per delegation of powers is required for revival of the scheme
wherein the first claim is not preferred even after a period of two years from
documentation.

b) R-APDRP/IPDS/DDUGJY schemes may not be treated as non-starter as

disbursement from REC is dependent on utilization of the funds released by GoI.

c) In such schemes where utility has drawn mobilization advance, and has not
preferred any reimbursement claim for a period of one year after drawal of
mobilization advance, a notice shall be sent to the borrower by the ZO/PO to
refund the advance to REC, along with the applicable additional interest per
annum (as per latest REC circular in this regard), which will be applicable from
the date of drawal of first instalment. Alternatively, the utility needs to submit the
utilization of such advance against the project. If the utility wishes to continue the
scheme, the reasons with justification may be sent to competent authority as
defined in delegation of powers for not recalling the advance and permitting the
scheme to continue.

d) If the total mobilization advance (of all schemes of a utility) in which no progress
has been reported after a period of twelve months exceeds Rs.10 crore, the
same needs to be brought to the notice of the BOD, REC as per their directives.

19. Monitoring

The monitoring of T&D schemes (except Bulk Procurement) during implementation shall
be carried out in accordance with the approved Monitoring Guidelines for T&D schemes,
as amended from time to time. A copy of the same is enclosed as Annexure-IV.

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Apart from the above, to verify the operational availability of the assets created out of
the loan disbursed by REC, post disbursement monitoring (after closure) for projects
where security offered is hypothecation of future assets needs to be carried out once
every year for all schemes whose loan sanctioned is more than Rs.500 crore and
outstanding loan is more than Rs.100 crore. The monitoring shall continue till the loan
outstanding falls to Rs.100 crore or below.

20. Prepayment of loan

The prepayment of term loan availed for projects under these guidelines shall be
governed by the prevalent policy of REC on prepayment.

21. Payment security mechanism

A suitable payment security mechanism shall mandatorily be provided to REC by all

borrowers. The same shall be in the form of default escrow, TRA, or any other
acceptable mechanism to REC. However, State Government borrowers and Power
departments directly under State Governments are not required to provide default
escrow and no additional interest shall be applicable for not providing default escrow.

22. Security for loan:

All borrowers have various options/combinations of security defined in the REC loan
policy which can be chosen by them. However, loans to State Government and Power
Departments under State Governments are deemed to be Government Guaranteed,
and as such, no separate security is required to be given (hypothecation of assets, BG,
GG etc). However, the loan agreement shall contain a clause that the State Government
shall be responsible for the repayment of the loan, and the State Government needs to
make provision in the annual plan/budget of the Power Department towards loan
liabilities of REC, every year, till the entire loan is repaid.

23. Terms and Conditions for sanction:

The sanction terms and conditions shall be governed by Standard Sanction letter for
T&D schemes, in addition to any special conditions levied for the respective projects.
The loan documents shall be executed only if the utility is not in default.

24. Disbursal of loan

a. Disbursement of loan against any project will commence after execution of

requisite loan documents, creation of security, payment security mechanism,
compliance to Pre Disbursement conditions etc as per terms of sanction.

b. Installments of loan will be released on reimbursement basis depending upon

the progress of works indicated in the claims preferred by the borrower after pro

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 rata adjustment of initial advance, if any, and after pro rata adjustment of utility
contribution.

c. Mobilisation advance: In case of availability of adequate acceptable upfront

security to REC in the form of hypothecation of existing assets, Govt Guarantee
or bank guarantee covering at least 30% of the loan, REC may consider
releasing mobilization advance, based on the request of the borrower. The
amount of mobilization advance to be provided by REC shall be as follows:

(i) If the loan amount is more than Rs.100 crore, the mobilization advance shall
be limited to 10% of the loan amount.
(ii) In case of schemes where loan amount is more than Rs. 50 crore & up to
Rs.100 crore, the mobilization advance shall be limited to 15% of the loan
amount.
(iii) For schemes having a loan amount of less than Rs. 50 crore, the
mobilization advance shall be considered up to 20% of the loan amount.

d. In case of transmission projects with loan more than Rs.100 crores, and to be
implemented on partial turnkey/turnkey basis, and where there is no upfront
security available, REC shall consider to release loan for payment of
mobilization advance to the turnkey contractor by the borrower, governed by the
LoA/contract agreement with the turnkey contractor, subject to submission of
original invoice/proforma invoice or any other equivalent document for payment
of such advance to REC. The release of such advance by REC shall be made
directly to the contractor/supplier. Such mobilization advance shall be adjusted
against reimbursement claims of the respective supplier/contractor.

e. For GoI schemes where there is upfront release of loan/grant/subsidy from the
Govt of India, REC shall release the funds against the loan/counterpart funding,
based on the progress submitted by the utility, only after the expenditure against
the project has exceeded the amount disbursed by GoI for the project. The utility
shall certify that the amount disbursed by GOI has been utilized only for that
project for which it was given, at the time of submission of the first claim to REC.

f. In case of Intensive Electrification schemes, loan will be released on closure of

operations under ongoing scheme in that area.

g. In case of award cost(s) being less than the sanctioned cost, the reimbursement
from REC would be restricted to the invoice values raised by contractor and
reimbursed by the utility. There is no need to take any revised sanction or
reduce the loan amount from REC. IDC would be paid as per actuals over and
above the award cost if provided for in the sanction.

h. For turnkey execution, the reimbursement would be based on invoice raised by

contractor.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 15

 i. For departmental and partial turnkey execution, disbursements by REC against
the project shall be on pro rata reimbursement basis for completed
works/material supplied/erection work completed (as applicable) based on the
progress report duly approved and signed by the borrower.

j. In case of departmental execution, claims can also be admitted against receipt

of material at site, only for those items where separate cost of material is
identifiable and if the Claim is supported by a certificate from the utility for a)
receipt of the material at site, (b) quantum of supply of material, c) rate. Claim
admitted and released on this basis shall be deducted from the actual claim after
total works of each item is completed and becomes payable as per
reimbursement norms of REC.

k. Direct payment to contractors/suppliers is permissible, if desired by the utility, as

per prevailing policy of REC from time to time.

l. Physical progress made against the scheme within one year prior to actual
sanction, could be considered as permissible expenditure for reimbursement.
Also, for the works completed during the implementation period, claims can be
submitted by the utility upto three months from the completion of the project.

m.For bulk procurement and installation Schemes, the release would be up to 90%
of the invoice value of the equipment/material supplied, after pro-rata adjustment
of initial advance, if any. 10% of the retained individual invoice value, would be
released after the borrower certifies that equipment/material has actually been
installed in the field. Each claim shall also be supported by the following
documents:

i. The original invoice, along with a copy of the same, duly approved and
signed by the authorized officer of the Division/Circle of the Board/utility.
Invoice are to be certified by the authorized officer of the Division/ Circle of
the Utility/Board that the equipment/material have been duly received in
good order and have been issued or under issue to the field officer for
installation.
ii. A certificate from the authorized officer of the borrower that the
equipment/material, for which the claim is being lodged, have not been or
are not proposed to be financed from any other loan from REC or any
other funding agency, including the State Govt.

The original invoice will be returned to the borrower after the following certificate
is recorded prominently on each page of the same by the concerned CPM/ZM:
“All the material /equipment, under this invoice are being financed by the REC under scheme
code no.______."

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 16

25. Physical Closure of Schemes

a) Closure of a scheme means preparing completion report of the sanctioned

scheme wherein:
i. envisaged physical target has been achieved; or
ii. sanctioned loan amount is fully drawn; or
iii. envisaged scheme period is completed and no extension is required; or
iv. the Utility feels that due to present condition, there is no scope to carry out
the work of the scheme within the stipulated/ extended scheme period.
b) Certificate of expenditure incurred may be taken from the utility at the time
of closure. In case of disbursement by REC exceeding the expenditure incurred,
advice may be sent to loan section of REC for recovering the excess
disbursement.

c) No scheme shall be closed without final monitoring, irrespective of the extent of

loan disbursed. The major head wise physical assets created under the scheme
and other relevant details may be entered in ERP in the appropriate page.

d) The ZMs/CPMs have been delegated the powers for closure of all types of REC
schemes.

These guidelines stipulate the general guiding principles for REC and the borrowers.
Any specific policies of REC and terms and conditions of standard sanction letter shall
form a part of these guidelines and shall prevail over the stipulations in these guidelines
in case of any clarification. REC reserves the right to interpret any provisions of these
guidelines in consonance with its prevalent policies.

----------------------------

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 17

 Annexure-I

POLICY FOR FUNDING AGAINST REGULATORY ASSETS (excluding Return

on Equity component) OF POWER UTILITIES
(effective from 15th July 2014)

Board of Directors of REC approved the aforesaid policy in the 405 th meeting held on
15th July 2014. The salient features of the policy are as below:

1. Eligibility :
The funding against the regulatory assets shall be available only to

 State Electricity Boards

 State Power distribution companies i.e. DISCOMs,
 State Transmission companies i.e. TRANSCOs,
 Joint Ventures between government and private sector (with government
having a minimum 26% share)

2. Purpose :

To provide financial assistance against the regulatory assets of Power Utilities

with identified amortisation schedule.

3. Basis of funding :

 The funding shall be available only against the regulatory assets recognized
by the respective State Electricity Regulatory Commission (SERC) and
recovery schedule included in the tariff order.
 Funding shall be available only against regulatory assets recognized in
previous three years' tariff orders.
 A time bound recovery plan of the regulatory asset by SERC shall be in place.
 A plan for recovery of carrying cost of the regulatory assets by SERC shall be
in place.
 A business plan of the utility for turnaround of cash flow shall be in place and
made available to REC

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 18

4. Extent of funding:

The funding against regulatory assets shall be limited to the lowest of the
following amounts:

 The funding shall be limited to 50% of the total regulatory assets

recognized & recovery plan issued by SERC.
 The funding shall be available only against regulatory assets not being
funded from any other financial institutions, banks etc.
 Not more than Rs. 5000 Crore shall be funded to a single utility under this
policy. In case of joint sector borrowers not more than Rs. 2000 Crore shall
be funded depending upon the financial health, security provided and
Quantum of Government holdings.
 The extent of funding shall be limited to the exposure available as per the
Prudential Norms of REC/maximum permissible exposure as per latest
State Grading Circular.

5. Rate of Interest :

The rate of interest shall be as per T&D rates applicable on the borrower
based on grade awarded in the State Grading Circular issued by REC time
to time. REC policy shall be applicable wherever grading is not available
for borrower.
For joint sector borrowers, a risk premium of 0.5% over and above the rate
applicable for T&D scheme shall be applicable.

6. Tenor of the funding:

The tenor of the loan for funding of Regulatory Assets shall not exceed the
amortization period allowed by the respective SERC subject to a maximum
tenor of 10 years.

7. Disbursement:

Disbursement shall be made within a period of not more than 3 months from the
date of the documentation.

8. Repayment Period including Moratorium Period:

Repayment period shall be on quarterly basis or as per the REC policy.

Moratorium period of not more than 6 months shall be given to the borrower.

9. Default Escrow:

The borrower shall create an Escrow account as per REC guidelines to facilitate
the repayment of payment obligations towards REC.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 19

10. Security :

The borrower shall provide either of following or combination of any of the

following securities so as to cover not less than 1.1 times of the loan amount to
the satisfaction of REC:

i. State Government Guarantee.

ii. First charge on existing fixed assets and its valuation shall be carried out from
an outside agency.
iii. Bank Guarantee.
In case of Joint Sector Borrower (i.e. between Private sector and Government
sector), the State Government Guarantee to be provided to the extent of
shareholding of Government and Corporate Guarantee to the extent of the
shareholding of Private Sector Promoter(s) from holding company(ies).

In addition to the above borrower to provide charge on regulatory assets for

which REC is providing loan

Additional Security

The borrower shall undertake to provide additional security as acceptable to REC

during the currency of the loan in case it is found at any stage that the security
provided by the borrower has become inadequate to cover 1.1 times of the
outstanding loan amount.

11. Remedial Actions:

In the event of default in payment of dues, unless provided otherwise, the

guidelines for recoveries in the event of default by the borrowers shall be
applicable. All the remedial actions shall be initiated by Loan Recovery Unit in
consultation with Operational Division, wherever felt necessary.

12. Specific Terms and Conditions:

a) Entities not in default to REC, shall only be eligible for funding against
Regulatory assets.
'Not in Default' means that there should not be any overdues of interest and/or
principal to the Corporation on the date of disbursement, except where overdue
amount is on account of some issue remaining unresolved, as decided by the
Competent Authority.
b) The Tariff Order for the financial year in which loan is applied should have
been issued by the Regulator. In case the loan is applied after 30th November of
the year the tariff petition for the next financial year should have been filed to the
concerned SERC/CERC.

c) An undertaking will be given by the borrower that tariff petition for the
subsequent years i.e. after drawl of the loan will be filed before November 30,
every year during the tenor of the loan.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 20

 d) The borrower shall ensure that the loan from REC shall be utilised for the
purpose it is advanced to the borrower. Borrower shall also undertake to prove
the same during the pendency of the loan whenever desired by REC.

e) The borrower shall immediately inform REC regarding any change/

modification/ development in realisation plan of regulatory assets coming to its
knowledge through any order/ circular/ news report or any other communication
received from SERC or any other person.
f) Provisions of approved State FRP's, if any, in this regard to be taken in view
while appraising such proposal.
g) Besides assistance against regulatory assets, other short term loan, cash gap
funding, working capital loans over and above normal requirement availed by the
utility may also be taken into account for deciding actual quantum of assistance.
h) Additional conditions including security may be stipulated on case to case
basis, depending upon the requirement.
13. Other Conditions:

Loan documentation, disbursement procedure, pre-payment of the loan, penal

interest for delayed payments, fees etc shall be as per policy & procedure
applicable in REC.

14. Monitoring Mechanism:

The Borrower shall furnish to the Corporation a yearly statement of realization of

Regulatory Assets and balance regulatory assets recognized by the regulator.

15. Sanctioning Authority:

Sanctioning authority for Term Loan will be as per existing DoP with respect to
sanction of financial assistance for Term Loans.
In case of any query/clarification required with respect of the aforesaid Policy, the
same shall be decided by the CMD, REC and his decision shall be final.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 21

 Annexure II
Format for Appraisal of T&D Projects (ZO/PO)

1. Title, category and sub category of the Project

2. Project Cost, Loan Amount, IDC, Debt/equity ratio.
3. Brief about the utility –

i. Brief write up, Power position, consumer mix.

ii. Existing infrastructure
o No. of S/Ss voltage level-wise with total capacity.
o Voltage level wise lines (Ckt. Kms)
o No. and capacity of DTRs and nos. of feeders (Distribution Projects)
iii. Performance parameters – Details as per Latest available Audited Annual
Accounts i.e. Total Revenue, Profit Before Tax, Profit After Tax, Net Worth,
ACS per unit, ARR per unit etc
iv. Regulatory status – Status of filing of Tariff Petition, Latest available Tariff
order, amount of Regulatory Assets approved, ACS, ARR etc
v. Capex Plan of the utility for next few years along with actual Capex during
last 3 years
vi. Default status to REC
vii. Exposure to REC
viii. Grading

4. Project Details:

i. Scope of works in the format as below:

Sl no. Item Name Unit Qty Rate Amount

ii. The details should provide for

o Hard cost i.e, cost of equipments and labour
o Soft cost i.e, contingency, administrative and other charges
iii. Basis of Cost estimates
o Cost data of current year;
o Cost data for earlier year along with suitable adjustment;
o Based on recent contracts; etc
iv. Basis of DPR preparation – type of survey by utility if any
v. Detailed justification of the project – need for the project
vi. Load growth of the area during past three years and load growth estimate
for the utility as per EPS
vii. Eligible bulk exposure for the FY on the basis of grading (For bulk
procurement projects)
viii. Single line diagram of the proposed project
ix. Grid map of the proposed project (Transmission projects)
x. Loading of S/S and lines (In Existing vs proposed system)
xi. Details of source and load stations
Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 22
 xii. Status of tendering, if any
xiii. Project viability
xiv. Approval of project:
o Posing/Approval by regulator/CAPEX plan for the control period/Board
Approval
o Approval by the Board of Utility; etc
xv. Execution period proposed
xvi. Execution methodology – Turnkey, Turnkey Package-wise, Departmental,
Purchase departmental with turnkey execution etc
xvii. Requirement of land (in sq meters) and availability status
xviii. Security for loan
xix. Project in line with CEA perspective plan (Transmission Projects)
xx. Availability of Escrow
xxi. Loan repayment period sought
xxii. In case of replacement of assets before their useful life, the credit cost of
those equipments has to be provided or otherwise the details from utility
may be sought regarding planned usage of assets being replaced.
xxiii. Clearances from agencies, if any
o Forest
o CTU/STU
o Others
xxiv. Project Area: (Apart from Bulk projects)
o Existing infrastructure
o Consumer base (Distribution Projects)
xxv. Complete sanction letter by MoP/Nodal Agency (DDUGJY/IPDS schemes)
xxvi. For IE Projects only:
o Category of consumers,
o type of meters to be installed under the project,
o ongoing IE schemes in the project area,
o ground water status report from relevant authority for release of Ag
connections
o existing pumpsets details in the area,
o consumer contribution if any

5. Certification that no other agency is providing loan against this project and is not
covered under any govt scheme/ other projects sanctioned by REC or other FIs

6. For Bulk procurement projects: a certificate from utility that the equipments being
procured are not covered under financing from regular projects

7. Undertaking that the Cost estimates are acceptable to ZM/CPM and the project
has been prepared as per applicable T&D Guidelines.

8. The relaxations requested if any along with detailed justification may be outlined.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 23

 Annexure III
Benefits and IRR calculations (Illustrative)
State:
Utility:
Project title:
District/Division/Project area:
Project Category:
A. Calculations of Benefits & Gross Return
Sl.No. Particulars Unit Amt. Value
1 Total Project cost Rs. Lakhs
2 Total Loan Amount sought Rs. Lakhs
A. Benefit due to Scheme
a) Benefit due to sale of additional energy
i) Present Demand with rostering etc KVA
ii) Estimated Present Demand without rostering etc KVA
iii) Present Additional demand (base year) [ ii-i ] KVA
Enclose
iv) Load Growth of the area %
calculation sheet
v) Additional demand (horizon year) [ iii * (1+iv /100)^5 ] KVA
vi) Expected Additional sale of energy [ v *0.8*0.4*8760/100000 ] LUs
vii) Average Net Tariff for the project area Rs. per unit
Financial benefit due to sale of additional energy Rs. lakhs

b)Benefit due to saving in line losses

Present losses in the system
i) LUs Enclose
Line losses after implementation of the scheme
ii) LUs calculation sheet
Net savings [ i-ii ]
iii) LUs
iv)
Average cost of power purchase Rs. per unit
Financial benefit due to saving in line losses [ iii*iv ] Rs. lakhs
c) Other Benefits
i) Enclose
ii) calculation sheet
Total C
Total Financial Benefits to the Utility due to Scheme Rs. lakhs

B. IRR Calculations
(Amount in Rs Lakhs)
Anticipated investment over 2/3 years(as per scheme Anticipated benefits
period) over 25 years
1 Year-I : 0%
2 Year-II : 40% Justified
3 Year-III : 60% Anticipated %
80%
100%

Year Investment O&M charges Financial Net

@ 3% Benefits Financial
1 2 3 4 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
IRR=

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 24

 Annexure-IV
GUIDELINES FOR MONITORING OF T&D SCHEMES

1. INTRODUCTION

REC is required to have an effective monitoring system for watching the progress of
Projects being financed by it. Monitoring is required to obtain feed back on the
physical and financial progress of the REC funded projects to take necessary steps
for taking timely action/remedial measures. Financing of REC projects is mainly
done on reimbursement basis and release of funds at different stages is also
required to be linked with the monitoring observations, as well as ensure creation of
assets which are offered as security for the projects.

The project monitoring, which ensures a continuous watch over project

implementation and achievement of targets envisaged therein is thus a distinct
characteristic feature of REC financed projects. The Corporation has therefore
developed an appropriate regular system of monitoring of all schemes periodically
with a view to watching implementation, identifying bottlenecks, time/stage of fund
requirement and making suitable suggestions to the utilities for rectification thereof.

2. OBJECTIVE

The main objectives of monitoring rural electrification schemes are to ensure the
following:

i) To assess whether the physical progress is commensurate with the funds

disbursed.
ii) Proper utilization of the loan amount released from time to time.
iii) Generation of claims from utilities and financial planning (disbursement).
iv) Proper feed-back from the field regarding constraints in the implementation of
the ongoing projects;
v) To take suitable action in case of change of scope of works/cost etc during
execution of works with reference to the sanctioned scope of works/cost.
vi) To initiate steps for closure of sanctioned projects as per guidelines after
completion.

3. MONITORING

Monitoring of REC projects shall be undertaken by Project Offices/Zonal Offices

located in different States. All categories of T&D projects are covered under these
guidelines for monitoring except Bulk Loan schemes, which are exempt from
monitoring. Following types of monitoring shall be carried out:
i) Initial monitoring (collection of details from utility HQ to keep track of progress
of project like land acquisition status, award of work, status of clearances etc)
ii) Detailed monitoring (site visit)
iii) Final monitoring (site visit)
The stages of disbursement during which each of the above type of monitoring is to
be carried out for schemes of different loan amounts is as below:

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 25

 Type of Description Loan Freque Disbursem
Monitoring amount ncy of ent stage
of monitor at which to
Schemes ing be
performed
Initial The following details of the project (as
Monitoring applicable) to be collected from the Above As This may
nodal officer of the concerned project Rs. 20 decided be done
in the head quarters of the utility and crores. by the ideally
kept track off in a standardized format CPM. after
by PO: document
ation and
(i) Project setup & utility nodal officer up to the
for execution of the scheme; start of the
(ii) Award status for detailed
procurement/erection; monitoring
(iii) Placement of Purchase Orders; /final
(iv) Land acquisition; monitoring
(v) Statutory permits and clearances; whichever
(vi) Constraints if any in take off; is earlier
for the
scheme.
Detailed When the project is under execution Upto Nil
Monitoring and the borrower has started drawing Rs.50
funds, Detailed Monitoring shall be crores
undertaken. In Detailed Monitoring, Above Once 50% to
apart from verifying the progress of Rs. 50 80%
works from office records of the powercrores
utility, field visit shall also be and upto
undertaken for physical verification of
Rs. 150
works on sample basis. crores
Above Twice 30%-50%
In case of P:SI category of schemes Rs.150 50%-80%
(Distribution or Transmission), sub- crores
stations and lines are physically
checked on sample basis*. The items
physically checked along with Make
and Sl.No. (wherever applicable),
should be identified and suitably
recorded. The deviations with respect
to the approved scheme should also
be recorded.

In case of schemes involving

electrification of pumpsets or service
connections at least 2% of pumpsets
and 2% of service connections, subject
to maximum of 20 numbers, shall be
randomly checked. The checking shall
be carried out by physical visiting or
wherever not possible/feasible, by

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 26

 Type of Description Loan Freque Disbursem
Monitoring amount ncy of ent stage
of monitor at which to
Schemes ing be
performed
verification of records of release of
connections by the utility. This needs
to be mentioned in the monitoring
report.

The observations of detailed

monitoring are to be communicated to
the utility.

Final Final Monitoring is done once in theUpto Once Beyond

Monitoring lifetime of a project, when the Rs.50 80%
disbursement level has reached 80%. crores
It is carried out when the project is
Above Once Beyond
reported to have achieved/nearing Rs. 50 80%
achievement of the envisaged targets,
crores
or being short closed due to some and upto
reason, or has completed project Rs. 150
period, with a view to verify the crores
reported physical and financial
Above Once Beyond
progress. It is similar to the detailed
Rs.150 80%
monitoring except that it is carried out
crores
when it is nearing completion. The For all Once At the
sample sizes* would be the same as the above time of
that of detailed monitoring except that
schemes closure
duplication may be avoided. if no final
monitorin
The observation of Final Monitoring g has
shall also be communicated to the been
utility. done
even
once.

* In case of sub-stations, the site of at least 10% of sub-stations (rounded to next

higher whole number) will be visited along with feeders. In case of only feeders
covered, the site of 5% of feeders / 2% of the DTs and allied works shall be covered.
In case of EHV sub-stations, the site of at least 25% of total sub-stations and allied
works will be visited on sample basis. In case of other works the site will be visited
as per the requirement of the monitoring team.

The sample size as above shall be maintained in totality over all the different types of
monitoring.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 27

Note:
(i) Claims for release of loan amount beyond the disbursement limits as above shall
normally not be recommended if the relevant monitoring has not been conducted.
However, depending on the urgency of fund requirement by the borrower or
exigencies of work at the PO or any other circumstances where it may not be
possible to conduct the monitoring, claim for release of loan may be
recommended by the CPM. However, the monitoring of such schemes will be
ensured by the Project Office within 2 months from the date of forwarding the
above claim. In case of any discrepancy, CPM shall ensure corrective action.

(ii) CPM shall carry out checks on at least 5% of the due schemes on random basis.

(iii) Final Monitoring of schemes where loan amount is more than Rs.500 crores would
preferably be done along with a representative of the Corporate Office. T&D Division at
CO may, however, monitor any of the sanctioned scheme at any stage for taking direct
feedback from the borrower.

4. REVIEW OF PROGRESS OF ALL ONGOING SCHEMES

i) At the commencement of a financial year, Project Office shall review the

progress of all ongoing schemes as on 31st March of preceding year and identify
schemes which are progressing well and the schemes which are non starter or
progressing slowly or are due for closure. Accordingly, CPM/ZM shall draw
quarterly monitoring Programme of visits of his officers.
ii) In case the schemes are not progressing well, the same shall be discussed
and sorted out at the Head Office level of the power utility by the CPM/Zonal
Manager.
iii) CPM/ZM shall submit monitoring report of the visits undertaken by his team
highlighting the issues if any, requiring attention to the T&D Division (Monitoring
Cell) of Corporate office.
iv) To the extent possible, the monitoring reports shall be accompanied with the
photographs of major equipments (sub-stations, lines etc) highlighting the
progress achieved.

FORMATS OF MONITORING

STANDARD MONITORING Format (Form I) is enclosed.

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 28

 FORM-I
FORMAT FOR MONITORING OF REC SCHEMES

1. SALIENT FEATURES OF SCHEME

1. Scheme Code No.

2. State/ Name of Discom

3. Scheme Name/ Elect. Divn./Distt

4. Category

5. Date of sanction

6. Date of Documentation
Period of scheme/ Scheduled date of
7.
completion
Extended date of completion, if
8.
applicable
9. Scheme cost (Rs. Lakh)

10. Sanctioned Loan Amt. (Rs. Lakh)

11. Disbursement (Rs, Lakh)/Percentage

Mode of execution of works-
12.
Turnkey/Partial Turkey/Departmental
13. Date of Last Claim

2. MONITORING DETAILS

1. Type of Monitoring (Pl. tick) Detailed Final

2. Date of Monitoring

3. Monitoring Team (Names)

4. a) Date of Last Monitoring, if any

b) Deficiencies as per previous
monitoring
c) Action taken thereon

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 29

 3. PHYSICAL PROGRESS (As reported by agency)

Sl. Item of work Total Quantity Progress reported by

No. (As per sanctioned the agency during
field visit
scheme)
Items as per scope of
work mentioned in
DPR/Claim format.

3-A Whether progress reported is higher than the progress as per last
claim. YES/ NO/ N.A.

4. DETAILS OF SITE VISIT/PHYSICAL VERIFICATIONS:

a.
b.
c.

5. DEFICIENCIES OBSERVED

a) Any bottleneck affecting the progress.

b) Whether progress of the scheme is as per sanction parameters.
c) Other, if any ( Please attach separate sheet for detailed
observations/issues to be communicated to agency.)

6. GENERAL REMARKS/COMMENTS REGARDING OVERALL

PERFORMANCE OF THE SCHEME:(Physical/Financial/Completion)

Whether further claim can be considered Y/N

If no, give specific reasons.

(Signature of field officer) Signature of Monitoring Officer

(Not mandatory) Name/Designation_________
Date___________________

Rural Electrification Corporation- Consolidated Guidelines for T&D schemes Page 30