MEGA  CITY  PROGRAMME

Ineligible Projects:
Maintenance works are not permissible. Finance would not be provided under the scheme for power, telecommunication, rolling stocks like buses and trams, primary health/education, projects of minor nature which can be easily implemented out of local funds or projects which are highly capital intensive and long duration projects and for long term studies etc..,
Under Ground Sewerage
At Alandur Municipality
- A Project with Public Participation
Categorization of projects
The projects are classified into 3 categories in order to strike a balance between purely utilitarian projects and those that are economically feasible projects.
Category A
-
 Remunerative, i.e. Those which are commercially remunerative.
Category B - Cost recovery, i.e. Where user costs could be levied to defray the expenditure towards O & M and also part of the capital.
Category C - Service, i.e. Projects that provide basic services for which low or nil returns are expected.
Funding Pattern to TUFIDCO
MCP funds are sanctioned and released by central and state government in the ratio of 25:25 as grant and the balance 50% is to be met from Institution Finance. The implementing agencies may also contribute the balance 50% from their own source or the Institution Finance portion may be supported by TUFIDCO itself.(The project land and private investment could partially substitute institutional finance.)
Out of the central and state shares released, a minimum of 75% should remain in the corpus of the nodal agency at the end of the 9th plan. The objective is to create and maintain a fund known as the revolving fund for the development of infrastructure assets on a continuing basis. Out of the grants received from the state and central government by TUFIDCO, 20% of the funds can be released as grants subject to the fulfillment of conditions for availing grants and 80% of the funds are disbursed in the form of loan to the implementing agencies.
Funding Pattern applicable to implementing Agencies

Category of the project
Rate of interest
(per annum)
Repayment Period
A - Remunerative
11%
10 Years
B - Cost recovery
10%
10 Years
C - Service
5%
15 Years

The interest rates and repayment period are subject to change from time to time as may be decided by the sanctioning committee.
Principal Moratorium Period : Maximum of 2 years for all categories.
Grants: 10% of the project cost for urban poverty alleviation projects subject to a maximum of Rs.1.00 crore per project.
Funds for plans and studies
100% grant is avoilable for the preparation of feasible project proposals by the implementing agencies and for the consultancy works to be executed by the DSM consultants.

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