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Loan and grant processing and disbursement flow

1. The sponsor will approach and submit the required documents to IDCOL;
• IDCOL will physically visit the project site to verify and assess the following and will submit inspection report (IDCOL Inspection Report: Solar Irrigation Pump):
1. The suitability of the irrigation land for project implementation;
2. Basic information on the project
3. Willingness of the farmers to avail the irrigation services from the project.
2. IDCOL will assess the adequacy of the collateral proposed by the sponsor as per IDCOL’s requirements;
3. IDCOL will review the quotations submitted by the suppliers and will select a supplier on competitive basis for providing technical solution to the;
4. IDCOL will prepare a detailed due diligence and appraisal report of the project;
5. The project proposal will be presented before IDCOL Credit Risk Management Committee (CRMC) for its approval;
6. Subsequent to approval of the CRMC, IDCOL  will :
1. issue a loan sanction letter to the borrower (See Sub Menu 4 for Pro-forma loan sanction letter);
2. sign term sheet with the borrower (See Sub Menu 4 for Pro-forma term sheet);  and
3. execute legal agreements i.e. loan and security documents with the borrower  (See Sub Menu 4 for Pro-forma legal agreements);
7. The sponsor will execute Supply Contract with the supplier (See Sub Menu 4 for pro-forma Supply Contract) and under the Contract, the sponsor will pay advance equal to 20% of the project costs upfront to the supplier;
8. The supplier will install the equipment and machineries and commission the project ;
9. The supplier will install the equipment and machineries and commission the project ;
10. IDCOL will physically verify the project site and will conduct performance testing to confirm the achievement of guaranteed outputs by the project;
11. Upon satisfactory performance of the project and completion of all the conditions precedent (See Sub Menu 4 for pro-forma conditions precedent checklist) of the loan under the Financing Agreement, IDCOL will disburse the loan and grant (the remaining 80% of the project cost) to the sponsor for the payment of the outstanding amount to the supplier.

See the Flowchart for Project Approval Process                                                                       Flowchart