Process of Selection of SPP and it's Appraisal

Process of Selection of Sub Project Plans (SPP) and it's Appraisal

Procedure for Submission of Sub Project Plan

​An EIA that would like to avail grant assistance for any component/ sub-component under NDP I will have to submit to the PMU a sub project plan along with an application (in the prescribed format) for financial assistance.  On request, NDDB may provide to the EIA technical assistance for preparing the sub project plan. 

Screening the EIAs based on the eligibility criteria

It would be examined whether the EIA meets the required eligibility criteria [general criteria applicable to a state/ EIA and the technical criteria applicable to the concerned component(s)/ sub-component(s)].  Only if an EIA meets the eligibility criteria would its plan be taken up for further processing.

Criteria for appraisal of SPP

The plan of EIAs that meet the eligibility criteria will be appraised on various aspects under each of the following broad heads:

  • Technical (including the set objectives of the sub project)
  • Financial
  • Procurement  of goods, works, non-consultancy services and consultancy services
  • Environmental and Social

Responses from EIAs on the key questions as provided in the Guidelines for the preparation of SPPs will form the basis for appraisal process and assessment of soundness on the above areas and therefore its ability to carry out the sub project and meet the set objectives.

Mostly, field visits will be undertaken by a team of technical and finance experts for carrying out the appraisal of the sub project.  The visiting team makes an objective assessment and provides clear-cut recommendation for the approval of the sub project plan.  The team shall specifically consider the following areas and make opinion/ recommendations for each as to their suitability/ adequacy/ preparedness relevant to the implementation of the sub project:

  • Strength of an EIA in implementing similar projects
  • Infrastructure facilities
  • Field facilities
  • Key manpower
  • Commitment and willingness to work
  • Work culture and environment
  • Long-term objectives
  • Success stories
  • Financial stability
  • Sustainability
  • Stakeholder’s contributions

Completion of the Appraisal Process

On receipt of the recommendations of the concerned Technical Groups, Environment and Social Management Cell (on E&S aspects), Project Finance and Appraisal, the Procurement Group and the field visit report, the PMU will examine the sub project proposal for inconsistencies, whether the assumptions are valid and the financial implications of such assumptions, whether all relevant costs (including repair & maintenance of assets) have been adequately provided for and the EIA’s financial management capabilities.  Thereafter, the complete appraisal of the sub project plan will be carried out.

The sub project plan may be modified based on the recommendations and a ‘Note for sanction of grant assistance’ will be prepared by the PMU and submitted to Project Steering Committee (PSC) for approval.  The Note will give clear-cut recommendations on the following aspects:

  • Technological merits of the plan
  • Comprehensiveness, practicality of the targets fixed vis-à-vis the bench marks
  • Strength of EIAs in terms of trained human resources, infrastructure and past achievements on similar lines
  • Due weightage to the likely impact on sociological and environmental issues
  • Explicit description and/ or quantification of expected outputs

Approval of SPP

The PSC will approve the SPP based on the recommendations in the Note for sanction.

Issue of Sanction Letter

Upon approval of the sub project proposal by the PSC, the PMU would convey the approval and sanction of the grant assistance to the concerned EIA through a Sanction Letter incorporating the terms and conditions.