FUNDING POLICIES SCHEME

INTRODUCTION
WHAT IS FUNDING SCHEMES ?
THESE SCHEMES PROVIDES FINANCIAL SUPPORT
TO DIFFERENT GOVERNMENT AND NON
GOVERNMENT ORGANIZATIONS FOR
IMPLEMENTATION OF PROJECT.
SOME GOVERNMENT FUNDING SCHEME :
1. CREDIT- CUM -SUBSIDY SCHEME FOR RURAL
HOUSING
2. HRIDAY
3. PFDF

CREDIT-CUM-SUBSIDY SCHEME FOR

RURAL HOUSING
OBJECTIVE-TO FACILITATE CONSTRUCTION OF
HOUSES FOR RURAL FAMILIES WHO HAVE SOME
REPAYMENT CAPACITY.

SCOPE-PROVIDES SHELTER TO RURAL FAMILIES

WHO HAVE NOT BEEN COVERED UNDER IAY AND
WHO ARE DESIROUS OF POSSESSING A HOUSE.

FUNDING
CENTRE AND THE STATE IN THE RATIO OF 75:25
RESPECTIVELY.
STRATEGY
RURAL POOR JUST ABOVE THE
POVERTY LINE ARE ENTITLED TO GET THE BENEFITS
OF THE SCHEME.
HOW TO SEEK ASSISTANCE-STATE GOVERNMENTS
DECIDE THE IMPLEMENTING AGENCY.

STARTS IN JANUARY 2015

1. NEED FOR THE SCHEME

APPROACH TO CITY DEVELOPMENT, BRINGING
TOGETHER URBAN PLANNING/ECONOMIC
GROWTH AND HERITAGE CONSERVATION IN AN
INCLUSIVE AND INTEGRATED MANNER WITH
FOCUS ON LIVELIHOODS, SKILLS,
CLEANLINESS, SECURITY, ACCESSIBILITY AND
SERVICE DELIVERY.

SCHEME STATEMENT
1. IT AIMS TO IMPLEMENT AND ENHANCE THE BASIC
SERVICES DELIVERY WITH FOCUS ON SANITATION
SERVICES LIKE PROVIDING WATER, TOILETS,
STREET LIGHTS ETC.
2. TO PRESERVE AND VITALIZE SO THAT TOURIST CAN
CONNECT WITH THE CITYS HERITAGE.

SCHEME OBJECTIVES
THE MAIN OBJECTIVE OF HRIDAY IS TO PRESERVE
CHARACTER OF THE SOUL OF HERITAGE CITY AND
FACILITATE INCLUSIVE HERITAGE LINKED URBAN
DEVELOPMENT BY EXPLORING VARIOUS AVENUES
INCLUDING INVOLVING PRIVATE SECTOR.

FUNDING OF PROJECTS
ALLOCATION OF PROJECT FUND AVAILABLE WITH
HRIDAY THE DISTRIBUTION WILL BE AS UNDER:
SR.NO.

COMPONENTS

% OF TOTAL
FUNDS

HRIDAY PILOT CITIES PROJECT

IMPLEMENTATION

85%

NPMU/CITY PMU ESTABLISHMENT AND 3%

OPERATIONALIZATION AT MOUD/CITY

CAPACITY DEVELOPMENT FOR

HERITAGE CITIES

3%

DPRS AND DEVELOPMENT /

MANAGEMENT PLANS

4%

IEC

4%

A&OE

1%

OUTCOMES OF HRIDAY SCHEME

THE FOLLOWINGS ARE THE SPECIFIC OUTCOMES ENVISAGED
UNDER HRIDAY.
1. CLEAN AND IMPROVED SANITIZED ENVIRONMENT .
2. IMPROVED SANITATION STANDARDS AT NATURAL AND
CULTURAL TOURIST ATTRACTIONS WITH CONVENIENCE AND
SAFETY FOR VISITORS.
3. PROPERLY CONSERVED, REVITALIZED AND BEAUTIFIED
HERITAGE MONUMENTS.
4. GREATER PARTICIPATION BY LOCAL COMMUNITIES IN TOURISMRELATED ECONOMIC AND LIVELIHOOD ACTIVITIES.
5. INCREASE IN THE INFLOW OF THE TOURIST TO CITIES.
6. INCREASE IN THE DURATION OF STAY OF THE TOURIST IN THE
TOWN.

POOLED FINANCE DEVELOPMENT

FUND(PFDF)
PFDF IS A CENTRAL GOVT. SCHEME STARTED IN 2006
TO PROVIDE THE CREDIT ENHANCEMENT FACILITIES
TO ULBs BASED ON CREDIT WORTHINESS
OBJECTIVE :1. IMPROVE INFRASTRUCTURE FACILITIES OF ULBs
2. PROMOTE RESOURCE GENERATED SCHEME FOR
ULBs TO IMPROVE FINANCIAL SCENARIO

STRUCTURE OF PFDF
FOR IMPLEMENTING POOLED FINANCE PROJECT, A
STATE POOLED FINANCE ENTITY (SPFE) SHALL BE
REQUIRED TO BE SET UP IN EACH STATE
CENTRAL GOVT. PROVIDE 5% FUND FOR PROJECT
DEVELOPMENT ASSISTANCE AND 95% CREDIT
RATING ENHANCEMENT FUND(CREF) TO IMPROVE
THE CREDIT RATING OF ULBs

SUMMARY OF MUNICIPAL CREDIT RATING

UNDER JNNURM
RATIN
G
CATEG
ORY

NO. OF
CITIES

CITIES

AAA
AA

NIL
4

MUMBAI,
NASIK,SURAT,PUNE

BBB

10

BHOPAL,INDORE,AJMER,
JAIPUR, PANJI ETC

BB

UJJAIN,JABALPUR,
MEERUT, SHIMLA ETC

KEY CREDIT FACTOR

HAVING STRONG
FINANCIAL
BACKGROUND,SURPLUS
REVENUE
NAGPUR,RAJKOT,VADODR HAVING COMFORTABLE
A,AHMEDABAD,ETC
FINANCIAL RISK AND
FAVOURABLE BASE
WEAK FINANCIAL
BACKGROUND,DEPEND
ON GOVT.
WEAK PROJECT
IMPLEMENTATION
FACILITIES

ADVANTAGE OF PFDF
DUE TO THIS SCHEME MUNICIPALITIES CAN KNOW
WHICH RATING THEY BELONG AND ACCORDINGLY
THEY CAN IMPROVE THEIR RATINGS