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Frequently Asked Questions (FAQs)

1. What is OUIDF?

OUIDF (Odisha Urban Development Fund) is a wholly owned Trust of Govt. of Odisha under Housing & Urban Development Deptt. The Trust is being managed by a Board of Trustees with Chief Secretary to Govt. of Odisha as its Chairperson and Special Secretary to Govt. in Housing & Urban Development Deptt. as its Secretary. It is the State Level Nodal Agency for Development of Urban Infrastructure Projects with Positive Environmental Impact.

2. What are the objectives of OUIDF?

The purpose of creation of OUIDF is to promote Bankable Urban Infrastructure Projects having Positive Environmental Impact across the State of Odisha by providing Concessional Long Term Loan Assistance and Viability Capital Grant primarily through ULBs, Statutory Bodies, OSHB, Development Authorities, Special Planning Authorities, Improvement Trusts as well as Private Sector Investors engaged in Infrastructure Development through a PPP Mode.

3. Give an Illustrative list of Urban Infrastructure Projects with Positive Environmental      Impact Eligible for OUIDF Funding.

Urban Infrastructure Projects having positive environmental impact for the purpose of Loan & Grant from OUIDF would generally include the following:-

  • Water Supply and Water Supply Improvement Schemes (WSIS).
  • Underground Sewerage Scheme (UGSS).
  • Solid Waste Management (including landfill sites, waste-to-energy, Segregation, Recycling and Reuse, Larger Compost Yards/Dump Areas).
  • Climate Adaptation Measures (e.g. Storm Water and Flood Drains).
  • Slum Development, Rehabilitation and Provision of Basic Urban Infrastructure and Civic Amenities to the Informal Settlers of the urban areas.
  • Bio Medical Waste Management.
  • Development & Renovation of Bus & Truck Terminals.
  • Prevention of Road Side Slaughtering/ cruelty to Animals leading to Environmental Pollution/ Degradation & Effective Management of the Bio Degradable Solid Animal Waste through promotion/ development of Economic Size Modern Slaughter Houses for centralized Slaughtering of Animals in Identified Locations.
  • Conservation of Forest & Wooden Resources and Promotion of Electric Crematorium.
  • Conservation of Electric Energy through Energy Efficient Street Lighting.
  • Encouragement for use of Solar Energy and its Commercial Application.
  • Reclamation/ Preservation of the Water Bodies / Tanks making them user friendly and reduction of Environmental Pollution.
  • Encouragement for use of Solar Energy and its Commercial Application.

The above list is only illustrative and not exhaustive. Any Bankable Urban Infrastructure Project having positive environmental impact would be eligible for OUIDF Loan & Capital Grant for acquisition of Capital Assets (Excluding Land) only

4. Who are the borrowers eligible for availing assistance of OUIDF?

Eligible agencies for OUIDF Loan & Viability Grant are Urban Local Bodies, Development Authorities, Regional Improvement Trusts, Special Planning Authorities, Odisha State Housing Board and other Statutory Boards Public Sector Undertakings and Private Investors for setting up Infrastructure Project in the State of Odisha having a positive environmental impact.

5. What are the different types of Assistance that can be availed from OUIDF?

Assistance from OUIDF is available only for promoting Urban Infrastructure Projects having a positive environmental impact.

Three types of assistance are available from OUIDF for such purpose:

  • Concessional Long Term Loan Assistance with a repayment period of 20 Years including a moratorium of 2-3 Years depending on the nature of the project out of Urban Loan Fund (ULF) of OUIDF having a Corpus of EUR 25 Million.
  • Viability Capital Grant ranging from 50 to 70% of the project cost out of the Viability Grant Fund (VGF) of OUIDF with a Corpus of EUR 25 Million.
  • Project Development Assistance from out of the Project Development Fund (PDF) of OUIDF having a Corpus of EUR 2.5 Million to ULBs and other Statutory Bodies, Development Authorities, Special Planning Authorities etc. towards reimbursement of the Cost of preparation of DPRS through Accredited Consultants of OUIDF, for Inviting Financial Bids or for Floating Tenders for Identification of PPP Partners or for Procurement of Capital Goods and for Expression of Interest for an agreed purpose by OUIDF for its assisted Projects. This is also a Grant from OUIDF.

6. What is the maximum quantum of loan assistance available from OUIDF?

  • The maximum quantum of loan assistance to a single project is 20% of ULF fund amounting to EUR 5 Million or INR 40 Crore considering the existing exchange rate of 1 EURO= INR 80
  • The maximum quantum of loan assistance to a single borrower is 40% of the ULF Fund amounting to EUR 10 Million or INR 80 Crore with the same Exchange Rate.

7. What is the maximum quantum of Viability Grant to a Project?

Viability Grant is given to projects selectively depending on its merit so that it becomes self sustaining at least three years after its commercial operation. The Viability Grant is given only for creation of Fixed/ Capital Assets and not for meeting the revenue deficit. The Viability Grant generally ranges from 30-50% of the Project Cost but can be increased up to 70% of the Project Cost in exceptional cases depending on its necessity, merit of the project on case to case basis and the positive Environmental Impact it is likely to generate have after its implementation.

8. What is the Period allowed for repayment of the loan to be availed from OUIDF?

The Repayment period of a loan depends on its surplus generation capability. A maximum Repayment Period of 20 Years can be allowed for repayment of the loan with its interest including the moratorium period needed for implementation of the project. During the period of moratorium, the borrower is required to pay only the interest that will be due from time to time, but not the principal installment.

9. What is the moratorium period allowed for implementation of the project?

The OUIDF loan can be repaid maximum over a period of 20 years from the date of its first disbursement including a moratorium of 2 years in 36 Half-Yearly installments. However, depending on the nature of the project and on a case to case basis, the moratorium period for repayment of the principal amount of the loan can be extended up to 4 years by OUIDF with the prior approval of KfW.

Depending on the period of moratorium, the number of Half-Yearly installments for payment of the principal amount would be decided by OUIDF.

10. What is the prevalent rate of Interest applicable to OUIDF Loan?

9.50% Simple Rate of Interest P.A. with a rebate of 1% for timely repayment of the Principal Installment & payment of Interest whenever it is due.

11. What are the documents that an ULB should submit to apply for the loan and grant from       OUIDF?

  • Application for loan & grant in the prescribed Loan & Grant Application form of OUIDF.
  • A DPR of the Project prepared by an Accredited Consultant of OUIDF( At the moment from out of the approved list of Consultant / Firms of Ministry of Housing & Urban Development Deptt. of GoI) having the required Professional & Technical Capability to prepare the DPR.
  • Audited Financial Statements of the previous 5 FYS.
  • A Municipal Corporation / Council Resolution to avail the loan & grant from OUIDF with the applicable rate of interest and repayment of the same with interest whenever it is due as per the contractual obligation with OUIDF. The resolution shall also indicate that the Project is included in the City Development Master Plan of the ULB and the Capital Expenditure Program me of the ULB for that FY & that the Project shall also be executed by the ULB by availing the loan & grant from OUIDF with the Terms & Conditions to be specified by OUIDF at the time of sanction of the assistance.
  • All the Statutory Approvals & Clearances from the Competent Authorities to set up the project in the specified location.
  • Allotment/ Possession letter of land from Govt. and permission from Govt. to set up the project on that land.
  • Three quotations of all the items to be purchased for the project from reputed sources along with a comparative analysis and due justification for selecting a particular item / equipment from a particular source. The Odisha Govt. procurement guideline should be followed for purchase of goods.
  • The Schedule of rates adopted for the purpose of estimation of cost on various items of the Project and due justification for providing escalation / contingency beyond the schedule of rates if any.
  • Council Resolution of the ULB to bring the required contribution,(10% of the Project Cost), for availing the loan & grant of OUIDF as well as to plan , execute and monitor the project within the budgeted time & cost by specifying a Nodal Officer having the required Skill & Competency for Supervision & Implementation of the Project.
  • The proposal for loan & grant should clearly demonstrate how the project contributes to up-gradation of the environment after implementation of the Project leading to improved living standards and better quality of life of the people of the locality.
  • The loan & grant application of the ULB should be duly signed by the Municipal Commissioner / Executive Officer of the concerned ULB & submitted to Secretary OUIDF through Director Municipal Administration to Govt. being forwarded by the Collector of the concerned District where the ULB is located in the address given below;

Secretary, OUIDF
Zone A/2, 4th Floor, Fortune Towers

12. What are the documents that a Development Authority, OSHB, Improvement Trust, Special Planning Authority or a Statutory Body under the administrative control of Govt. of Odisha should submit to apply for the Loan and Grant from OUIDF?

All the documents as specified at Point No.11 applicable for ULBs should be submitted by these organizations except that instead of a Council Resolution, these organizations would be required to submit their Board Resolution. The loan application duly signed by the Head of the Organization can be sent directly to Secretary, OUIDF in the addressed mentioned at Point No: 11 above through the Collector & District Magistrate of the District where the Organization is located.

13. What is the minimum requirement of Contribution that an ULB or other organizations or Statutory bodies mentioned at Sl No 11 & 12 above are required to bring to avail OUIDF Assistance?

Minimum 10% of the Project Cost. The required / estimated promoter’s contribution to be invested in the project should be deposited in an ESCROW ACCOUNT to be maintained with a Nationalized/ Schedule /Commercial Bank before release of Funds from OUIDF. The Corporation / Council / Board resolution of the ULBs/ or other Organizations and Statutory Bodies seeking assistance from OUIDF should mention the same while submitting the loan / grant application to OUIDF.

14. What are the purposes for which assistance can be availed from Project Development Fund of OUIDF & who are eligible for availing such assistance?

Assistance in the form of grant is available from the Project Development Fund of OUIDF only to ULBs and other Organizations like OSHB, Development Authorities, Improvement Trusts, Special Planning Authorities and Statutory Bodies as well as State Owned Corporations and not to Private Sector Borrowers for the following purpose:

  • Reimbursement of the Cost of Preparation of the DPR prepared through an Accredited Consultant of OUIDF selected by Inviting Financial Bids from the list of all the approved consultants but only after the Project is approved for Financial Assistance by OUIDF & KfW, but not before.
  • Reimbursement of the cost incurred for floating Tenders for purchase of Capital Goods needed for an approved Project or RFP for selection of PPP Partners or for inviting financial bids / expression of interest from consultants or PPP partners. But the Project should have the Financial Approval of OUIDF & KfW.

15. What are the eligibility criteria for a Private Sector Borrower to avail concessional loan assistance & viability grant from OUIDF?

  • Should have been selected as a PPP partner of any ULB or Other State Owned Organizations or Statutory Bodies as mentioned above for any Urban Infrastructure Project having Positive Environmental Impact & also coming within the definition of such Projects of OUIDF & KfW. The Selection of the PPP Partner should have been done through an Open & Transparent System of Bidding by inviting Technical & Financial Bids.
  • Should have entered into a Concessionaire Agreement with the concerned ULB or any of the State Owned Agency after such selection as mentioned above to execute the Project within the budgeted time & cost as mentioned in the REQUEST FOR PROPASAL (RFP) at the time of selection of the PPP Partner.
  • Should be willing to mobilize the balance amount beyond what has been specified in the Concessionaire Agreement from various sources either by way of Bank Borrowings or from his own source.
  • Should be willing to provide minimum 25% of the Project Cost as his contribution for promoting the Project. The Promoter’s Contribution could be even more as it would be computed by integration of the following elements of cost:
    • 25% Margin on Financeable Fixed Assets excluding the Cost of Land.
    • Margin Money for Working Capital or Total Working Capital if no Bank Finance is being availed for working capital.
    • The Total Need of Preliminary & Pre-Operative Expenses needed to be spent before Commencement of Commercial Production.
    • Initial Cash Loss if any likely to be incurred during initial years of operation.
  • The Debt Equity Ratio of the Project should be less than 2:1
  • The Debt Service Coverage Ratio of the Project should be greater than 1.5
  • Asset Coverage Ratio (Net Tangible Fixed Asset / Total Debts) should be > 1.25
  • The ULB or the State Owned Agency or the Statutory Body with whom the Concessionaire Agreement has been executed by the Borrower should be willing to Plan/ Monitor/ Inspect/ Control the Project during the currency of the loan in order to implement the project within the budgeted time & cost as well as for repayment of the loan of OUIDF.
  • Should necessarily exhibit the needed Technical Competency and Financial Ability with desired shock absorbing capacity to execute and operate the project to the satisfaction of OUIDF and must be willing to plug the deficiency observed during the appraisal of the Project by OUIDF & KfW taking required corrective measures.
  • Should be able to Provide the Sources of the required Promoters Contribution needed for the Project from authentic/ genuine sources duly certified by a Chartered Accountant to the satisfaction of OUIDF.
  • The Promoters/ Directors should not have been defaulters to any Bank or Financial Institution at any point of time nor should have been involved in any Economic or Criminal offence at any point of time. All the Promoters & Directors of the Borrowing Company / Firms should also give an Affidavit to that effect from an Executive Magistrate at the time of submitting their loan or grant application to OUIDF.
  • In addition, all the borrowers should have the institutional capacity to implement the project and to operate and maintain the constructed facilities in a satisfactory manner. In case where the institutional capacity of the borrower is not adequate, OUIDF would require the project sponsorer to procure the technical assistance services.
  • Should be willing to bring the entire Promoter’s Contribution envisaged in the Project in shape of Fixed Assets as per the project need mentioned in the DPR excluding the cost of the land before release of funds from OUIDF Source.
  • Should be willing to Provide Collateral Security / Bank Guarantee/ Corporate Guarantee / Personal Guarantee to cover the credit risk if needed by OUIDF & to its satisfaction.
  • Should be willing to enter into a Tripartite Agreement involving OUIDF, the ULB or the Statutory Body or the State owned Agency with whom the concessionaire agreement has been executed by the Borrower for executing the Project in order to Channelize the loan & grant fund to be disbursed by OUIDF through them and for repayment of the agreed amount of Principal Installment and Interest as and when it is due out of the user fee / tipping fee etc. receivable from them.

16. What are the documents that a Private Sector Borrower should submit to apply for the loan and grant from OUIDF?

  • First of all, a Private Sector Borrower need to submit all the documents to fulfill the eligibility criteria specified at Point No. 15 mentioned above along with the Memorandum and Article of Association of the Borrowing Company as well as its Associated Company to avail OUIDF Assistance.
  • Besides, all the documents needed to be submitted by an ULB or a Statutory Body or a State Owned Institution mentioned at Point No. 11 & 12 mentioned above should also be submitted by the private sector borrower to avail OUIDF Loan or Grant.
  • In addition to the above, all the Partners/ Promoters/ Directors of the borrowing firm should also submit an Affidavit to be sworn before an Executive Magistrate as per the format specified by OUIDF for such purpose along with Know Your Customer (KYC) information as per the format of OUIDF.
  • The loan and grant application of the Borrower should be forwarded by the Head of the ULB or the Statutory Body or State Owned Agency with whom the borrower has executed the Concessionaire Agreement along with all the above mentioned documents (after being satisfied about the eligibility criteria of the borrower to avail OUIDF Assistance and to implement/execute /operate the project successfully) to the Secretary, OUIDF in the address as mentioned above at Point No. 11.

17. Who are the ineligible Borrowers?

  • Borrowers for whom at least two semi-annual payments are in arrears will not be eligible for further loans.
  • Borrowers who have already availed 40% of the Urban Loan Fund of OUIDF amounting to INR 80 Crores but are yet to pay back any amount of the availed loan. However if a borrower has partially paid back the principal amount as per the repayment schedule and is also not a defaulter of either interest or principal can be again given a loan of equivalent amount (the amount already paid back) provided the Project meets other eligibility criteria on its merit but only after the due approval of the Board of Trustees and KfW.

18. What are the items that can be financed from the loan or grant fund of OUIDF?

Eligible items for OUIDF financing: OUIDF will finance the costs of civil works, services, goods and materials. OUIDF will not finance the land acquisition costs and the working capital. Minimum 25% margin on financeable fixed assets would be maintained in case of private sector borrowers.

19. Can OUIDF extend loan and grant to Urban Infrastructure Projects having positive environmental impact beyond the Territorial Boundary of the State of Odisha?


20. Can a borrower pre-pay the loan before the due date of its repayment & whether any fore closure charges would be payable by the borrower in the event of pre-payment of the loan before its due date?

Yes, a borrower can always repay the loan before its due date of repayment. No fore closure charges would be applicable for Pre-Payment of the loan.

21. Is deviation of the terms & conditions of sanction of Loan & Grant acceptable to OUIDF?

Deviation to the terms and conditions of sanction, change in schematic provision with regard to fixed assets, diversion of funds from one head to other head shall not be allowed in general. However, in the interest of the Project, if it is felt that some deviations are required to be allowed, the same shall be done with the approval from Competent Authority (Chairperson of OUIDF & KfW).

22. Can a borrower avail disbursement without paying interest which becomes due during the implementation period?

The interest during implementation being a part of preliminary and pre-operative expenses is required to be paid by the promoter as and when due. No disbursement shall be allowed to the defaulting units. However, adjustment of default can be considered, where ever desirable with the approval from the Chairperson of OUIDF.

23. What are the procedures that should be followed by a borrower at a later stage during the implementation of the project for any change in the project design?

Any major changes in the Project design shall require KfW’s prior consent. The borrower shall inform OUIDF immediately stating the reasons, the planned measures and the consequences of the changes (including on Total Cost & Viability of the Project) which in turn would be communicated to KfW for getting their approval. Execution of such measures may commence only on the basis of revised planning and upon KfW’s consent.

24. Who are the Accredited Consultants of OUIDF through whom the Detailed Project Report can be prepared for availing OUIDF Assistance?

The finalization of the list of Approved Consultants & Reputed Firms for the purpose of Accreditation by OUIDF is under process and is likely to take some more time. At the moment, DPRs can be prepared taking the help of Consultants from out of the list of Approved Firms / Consultants of Govt. of India under Ministry of Housing and Urban Development Department. The list of such Consultants is also available in the Website of OUIDF.