All Distribution Sector Infrastructure capital projects are eligible under the NEF (Interest Subsidy) Scheme provided that the proposed works have not been funded through the R-APDRP or RGGVY schemes. The projects for which any other grant / subsidy from Government of India has already been received / allocated will not be eligible under this scheme. Works similar to R-APDRP shall also be eligible under the scheme.
The loans taken by utilities from bi-lateral / multilateral FIs for eligible project shall be considered for extending benefit of the NEF if no concession has been provided by Govt. of India or on behalf of Govt. of India.
The capital works undertaken by the utility or franchisee on behalf of utility in the notified franchisee area would also be eligible for benefit under NEF scheme if provision of availability of NEF scheme is specifically mentioned in the bidding document for appointing franchisee. The performance criteria's of the utility shall be taken into consideration for evaluation of eligible subsidy. The eligible interest subsidy will be released to the Utility and Utility shall make back-to-back arrangements with franchisee for passing benefits under this scheme to the consumer.
The Steering Committee is empowered to include any other type of project for being eligible under this scheme.
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