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Government Of Assam Public Works

Non Lapsable Central Pool Of Resources

  • NLCPR Projects (Non-lapsable Central Pool of Resources)

    Background of NLCPR PROJECTS:

    Since the beginning of the First Five Year Plan Government has initiated various measures by formulating and implementing programs for development of North Eastern Region. Centrally sponsored schemes including flagship programmes are implemented for uplifting the socio-economic condition of the people. The abundant natural and human resources are not being able to exploit to required level due to critical gap in infrastructure, which needs urgent attention for development. With such a perspective in view, the Government of India introduced an ambitious scheme known as Non-lapsable Central Pool of Resources ( NLCPR) in 1998 as a route to provide additional funding for filling up resource gap in creation of infrastructure. The necessary fund for this pool are provided from the unspent balances, out of the 10% mandatory earmarked in the plan budget of 52 non exempted Ministries/ Departmentsof union Government for North Eastern Region to increase flow of budgetry financing. The process of development has been synergized after the creation of Department of Development of North Eastern Region in 2002 under the full fledged Ministry of Union Government.

    The North East has essentially depended on Central funding for development works. All the States in the NER are Special Category States whose Development Plans are centrally financed on the basis of 90% Grant and 10% State Share.

    The broad objective of the Non-lapsable Central Pool of Resources scheme is to ensure speedy development of infrastructure in the North Eastern Region by increasing the flow of budgetary financing for new infrastructure projects/schemes in the Region. Both physical and social infrastructure sectors such as Irrigation and Flood Control, Power, Roads and Bridges, Education, Health, Water Supply and Sanitation - are considered for providing support under the Central Pool, with projects in physical infrastructure sector receiving priority.

    Project formulation under NLCPR

    Each State would propose through its nodal Department, an Annual Profile of projects under the NLCPR in terms of a shelf of projects (called ‘priority list’ hereafter) latest by 30th November for the next Financial Year. The submission date for Priority List of projects shall be strictly adhered.

    Concept Papers must be prepared as per the requirement of generic structure. They must clearly indicate a detailed analysis of the existing facilities in the sector and full justification for retention of the particular project. The Concept Paper must invariably delineate the cost-benefit analysis of the project. For economic sector project economic benefit should specifically be indicated comparing it with the cost involved.

    The following points may be kept in view while formulating the concept papers for priority projects for submission to Ministry of Development of North Eastern Region:

    • The concept paper should elaborate the problem to be addressed through the project at the local / state level. Evidence regarding the native and magnitude of the problems should be given. Clear evidence should be available regarding the nature and magnitude of the problem to be addressed.
    • The development objectives proposed to be achieved should be given.
    • Benefits likely to accrue quantified in terms of population and other parameters.
    • The ongoing initiatives taken by the State Government and the manner in which duplication will be avoided and synergy created through the proposed project.
    • Economic parameters be given to justify the project for funding and in case of social infrastructure projects socio-economic analysis justifying taking up of the project may be elaborated.
    • Issues relating to sustainability, inc luding operation and maintenance of assets after project completion and related issues should be given.
    • Estimated cost, financial and physical phasing, time frame, status of administrative and statutory clearances from State / Central Government authorities, and readiness for implementation of the projects should also be given.
     

    The cost indicated in the Concept Paper should be on realistic side and based on latest SOR. The cost escalation while finally sanctioning the project is allowed only to the extent of 10-15 % over the cost indicated in the Concept Paper. Under exceptional circumstances this limit can be extended up to 20% beyond which the project will stand chances of being dropped or the State Government will be required to comment and fund the enhanced cost.

    The scope of the project indicated in the Concept Paper should be what is intended to be reflected in the DPR. There should not be any major change in scope of project in DPR against what was proposed in the Concept Paper.

    Projects of less than Rs.3 Crore would not be generally funded by the Ministry of DoNER under NLCPR.

    After the PCP (Project Concept Paper) is retained by the Ministry of Doner, The Detailed Project Reports (DPRs) would be prepared properly by the State Department based on the current schedule of rates and submitted to the Ministry of DoNER, in five (5) copies, through Nodal Department of the State within two months of retention of projects. If the State Government could not submit DPR of the project within two (2) months of its retention the project may be dropped.

    The DPR should be accompanied by a socio-economic feasibility report and must establish its economic and technical viability such as its rationale, cost, finances available from other sources, similar facilities available in and around area of the project site, detailed technical specifications etc.

    • CPM and PERT chart;
    • Year-wise phasing of inputs, viz. expenditure;
    • Quarterly and year wise physical outputs/targets to be achieved (as project monitoring indicators);
    • Project Implementation Schedule (Annexure III);
    • An authentication by State Authorities (not below the level of Chief Engineer equivalent) that the costs are based on the latest Schedules in vogue in the State concerned;
    • All relevant regulatory and statutory clearances and time frame for obtaining the same.
     

    Cost escalation:

    i. any reason generally does not qualify for consideration under the Non-lapsable Central Pool of Resources. However, in some deserving cases, if the enhancement of the cost is due to change in scope of the works that was not envisaged at initial stage, the proposal will be submitted to the NLCPR Committee at the appropriate juncture for consideration.

    ii. In cases where the increase in cost is not due to change in scope, and felt to be justified due to factors beyond the control of the executing agency, NLCPR Committee will take a view provided that in such cases in overall terms the escalation does not exceed 20% of the originally approved cost. Financing of such increased cost may be permitted on the basis of sharing between the Non-lapsable Central Pool of Resources and the State Government in the ratio of 1:1.

    Project implementation by the State Government.

    1. Once the project is approved by the Ministry of DoNER the State Government should ensure that the tender has been called on competitive basis by giving wide publicity in print media & website etc. and the works have been awarded within three months of its sanction, even without waiting for the release of funds from State Government to implementing agency.

    2. The State Government should follow all codal formalities and strictly adhere to the project implementation schedule and physical targets given in the DPR.

    3. State Government may give preference to Local Bodies for implementation of the projects if they are qualified under tendering/ financial rules followed by them.

    4. Any project which could not be completed within target date (as given in DPR by the State Government) plus six months, it will be closed for funding by M/o DoNER.  The State Government will be responsible for completion of the balance work in the project from its own resources.

    5. In case during implementation of project State Government wants to increase/ change the completion schedule of the project, it may be done at the level of State Chief Secretary by holding a meeting and the revised date of completion so finalized may be conveyed to Ministry of DoNER with specific reasons well before the expiry of six months period after the original/actual date of completion.

     Release of funds

    1. Once the proposal is approved for support by the Ministry of DoNER the funds would be released in three installments comprising of 40%, 40% and 20% of the approved project support/cost unless there are special circumstances which would be clearly brought out in the proposal for release.  The NLCPR division through the Joint Secretary concerned shall obtain the concurrence of Internal Finance Division of the Ministry for releasing installments.

    2. The funds would be released/ sanctioned to the State Government in the form of 90:10. 90% of the approved cost would be released by the M/DoNER as Grant. Balance 10% being State share would be contributed by the State Government. As regards the disbursements, if any for projects of Union Ministries/Departments, it shall be made from the Central Pool to the department/ministry in form of supplementary demand for grants.

    3. Release of funds for ongoing projects: The 2nd installment will be released only on completion of 40% of the project and submission of utilization certificate of at least 80% of funds released in 1st installment. The subsequent installments shall depend upon the progress - both in financial and physical terms – of the implementation of the project subject to 80% utilization of funds of last release, and full utilisation of all prior releases, if any, and achieving commensurate physical progress.

    4. Request for release of subsequent installments of funds submitted by the State must be accompanied with:

    • Utilization Certificates (UCs)
    • Quarterly Progress Reports (QPRs)
    • Photographs of the works completed
    • Work plan for the requisitioned amount with milestones and time frame
    • Inspection report of Nodal officer indicating the physical & financial progress of the project, etc.

    5. UCs shall be submitted in the prescribed proforma (Annexure IV) only when the expenditure on the project has been incurred by the implementing agency. Planning Secretary on behalf of the State and, in case of a Union Ministry, an officer not below the rank of Joint Secretary, should sign the UCs. Release of further installments shall be recommended only after receipt of UCs and QPRs and other mandatory documents.

    6. Funds released from the Pool must be transmitted to the implementing agency/ project authority (such as PWD, Housing Corporation, State Electricity Board, etc.) by the State Government within 15 days from the date of release of funds from Government of India and a certificate to this effect be sent to Ministry of Development of North Eastern Region by the State Planning Department.

    7.Funds released by the Government of India must be utilized within a period of 12 months from the date of release. In case the funds are not utilized within the stipulated time, such cases may be referred to the Ministry of Development of North Eastern Region with sound reasoning for revalidation. Revalidation for a limited period may be granted by Secretary of Ministry of DONER on merit.

    Monitoring & Evaluation

    1. The State and Union Ministries/Departments shall report the progress in respect of each project at the end of the quarter on the proforma (QPR) prescribed for this purpose at Annexure V. Any additional information may be furnished along with the format. Such QPRs should reach the Joint Secretary of the Ministry within three weeks of the end of the quarter under report.

    2. Chief Secretary of the State shall hold quarterly meeting to review the progress of implementation of the ongoing projects under NLCPR and make available summary record of such meetings to the Ministry of DONER.

    3. State will carry out project inspection periodically. The quarterly review report of the State would contain a separate and distinct section on the findings of the project inspection. In case of NLCPR projects implemented by Central Government agencies, such inspections may be conducted by their competent authority and reports will be submitted to the Ministry under intimation to concerned State Government.

    4. State would nominate a ‘nodal officer’ for each project who would be responsible for project implementation and monitoring.

    5. Monitoring and evaluation of implementation of the project shall also be undertaken through field inspections by officers of the Ministry of DONER, as well as through impact studies, social audits and evaluations conducted by government or through independent agencies at the request of the Ministry (DONER).

    6. Each State would ensure that the projects being funded under NLCPR are shown at Major-head to sub-head level in their plan budgets so that withdrawals from those heads as certified by audit can be matched with expenditure figures supplied by State for each project.

    7. The State Government would ensure that the data entry of the progress of the project starting from the submission of the priority list by the State Government upto the completion of the project shall be made by the designated officials of the State Government on the online data entry Management Information System (MIS) already in vogue.

    8. The Ministry should also review of implementation of projects with State Governments through video conference at the level of Joint Secretary.

    Transparency and Publicity of Information

    In order to ensure that the information about developmental schemes being financed through the Non-lapsable Central Pool of Resources reaches the ultimate beneficiaries, i.e. the targeted beneficiaries, there is a need to ensure greater transparency and publicity of information. For this purpose, the following shall be ensured:

    (i) All the schemes/projects being supported from the Central Pool shall be given wide publicity in local media.

    (ii) Immediately after project approval is received, the State Government shall display at project site a board indicating the date of sanction of the project, likely date of completion, estimated cost of the project, source of funding i.e. Non-lapsable Central Pool of Resources (Government of India), contractor(s) name and the physical Target etc. After completion of projects, State Government will put a permanent display on site like plaque on the wall etc. after asset is created displaying details of NLCPR funding .

    (iii) State Government shall disseminate information through media, print, electronic, through appropriate means on the schemes being implemented from the Central Pool.

    Completion Certificate

    After completion of the project under NLCPR in all respect i.e physically and financially the Executing Department has to submit project completion certificate through Nodal Department to The Ministry of DoNER.

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