As per RBI draft prudential guidelines for Advances -

Solution

As per RBI draft prudential guidelines for Advances - Projects Under Implementation, Directions, 2024, related to disbursement of funds: ·         For all projects financed by the lenders, it must be ensured that financial closure has been achieved and DCCO is clearly spelt out and documented prior to disbursement of funds. ·         Additionally, lenders shall ensure that disbursal is proportionate to the stages of completion of the project as also to the progress in equity infusion, as agreed. ·         In case of PPP projects, disbursement of funds should begin only after declaration of the Appointed date of the project. ·         The project specific disbursement schedule vis-à-vis stage of completion of the project shall be prescribed by the lenders. ·         Further, the lender’s Independent Engineer (LIE)/Architect must certify the stages of completion of the project. Note - The Lender’s Independent Engineer (LIE) is an agent of lending institutions like banks or non-banking financial companies (NBFCs) who provide the client with a detailed review of the proposed project’s documents and the evaluation of the technical design to validate the eligibility and other compliances of the project.  The LIE reports are majorly required for infrastructure and real estate projects, SEZ, and other infrastructure projects.