New Applcation process for NHB Subsidy - No need for IPA

NHB/HD/CC/Guidelines/2022-23/9234 Public Circular Dated. March 9, 2023

Subject : Revision in the scheme guidelines of NHB, including its implementation design, documentation and sanctioning process — reg.

This is in-continuation to a Public Circular No. NHB/HD/CC/Guidelines/2022-23/52 dated 10/11.11.2022 issued by NHB on the captioned subject.

Subsequently, NHB vide a public circular No. NHB/HD.CC/Guidelines/2022-23/6937 dated 27/29.12.2022 put on hold the implementation of said Public Circular dated 10/11.11.2022 due to administrative reasons.

In partial modification to the Public Circular dated 11.11.2022, the revised schemes guidelines of NHB including their implementation design, documentation and sanctioning process will be as under:-

A. System of Grant of Clearance

1. NHB will do away with two stage system of IPA and GoC. Now IPA will not be needed for availing benefit under the Scheme of NHB and applicant will apply straightaway for Grant of Clearance (GoC) to NHB after sanction of term loan by bank. The term loan sanctioned within 3 months from the date of online GoC application to NHB shall be treated valid, however, disbursement of term loan and start of project will be allowed only after issuance of GoC by NHB. GoC will be valid for 3 months for getting disbursement of first instalment of term loan and start of project. Accordingly, the applications in NHB will be dealt in the following manner:
   1. IPA system will be discontinued from 15.03.2023 and thereafter NHB shall accept applications only for Grant of Clearance with required documents.
   2. IPA/GoC applications received prior to 15.3.2023 will be considered as per existing system.
2. NHB has prescribed a new short template for DPR and Bank appraisal note (Annexure-I). The template is indicative and applicant/bank must ensure that the components mentioned in the template are invariably included in DPR or appraisal note, as the case may be.
3. The applicant will make online application to NHB for GoC and will have to submit following documents along with the application for GoC:-
   1. Detailed Project Report (DPR) and the information suggested in the NHB's prescribed template will only be mandatory
   2. Project Land Document along with non-encumbrance certificate
   3. Bank Sanction Letter
   4. Bank Appraisal Note
   5. Undertaking (will be part of Application Form in the prescribed format)

5. After application is submitted, an email will be sent to the applicant alongwith a reply/confirmation link to the financing bank. Concerned bank need to confirm the authenticity of documents online. Based on the confirmation of documents by the bank g. bank sanction letter, appraisal note and land documents etc., NHB will issue GoC.
6. The stage of inspection of the location for GoC will be replaced with a mobile app based self-inspection. During the JIT, the details captured earlier through mobile app like Geo Location/ fencing etc will be verified.
7. Subsidy claim documents will also be submitted by bank/applicant online.
8. Technical Data sheet for Cold Storages/Ripening Chamber and Protected Structure will be a part of DPR. Basic datasheet for Cold Storage and Ripening Chamber will be examined by the NCCD before GoC by NHB. It will be mentioned in the GoC Letter that applicant will construct the cold storage/ripening chamber/green house as per extant standards/ specifications prescribed by NHB.
9. Registration certificate/Deed in case of legal entity will be a part of DPR.
10. NHB shall rely upon financing banks for the examination of project documents

B. Letter of Comfort

1. IPA system will be replaced with Letter of Comfort (LoC) to the desirous applicants to facilitate them to get the term loan sanctioned from the Banks/FIs for their proposed project. However, LoC is not mandatory unlike IPA and it will be issued to only those who so desire as a facility letter to get his/ her term loan sanctioned from the Banks/FIs for the proposed project.
2. The applicant will make online application to NHB for LoC and will have to submit following documents alongwith the application for Loc :-
   1. Detailed Project Report (DPR) and the information suggested in the NHB's prescribed template will only be mandatory.
3. Project Land Document
4. The validity of LoC issued by NHB will be upto 6 months, which may be extendable by 3 more months based on justified reasons on case to case basis. The applicant has to get the term loan sanctioned for the proposed project within the validity period of 6 months.
5. After getting sanction term loan from the banklFl, the applicant will request NHB for issuance of Grant of Clearance. The procedure for making application GoC will remain the same as mentioned in Part-A of this notification.

This issues with the approval of competent authority.