A detailed project report shall necessarily be prepared by the Panchayat Raj Institution containing the following details:(a)Only such schemes which are economically viable and technically feasible beyond doubt, shall be recommended to the banks for sanction of loans.(b)A feasibility report from a registered technical expert, who will satisfy about the accuracy and the market trends so as to ensure smooth and timely repayment of loans and the advisability of taking up the venture in the context of its demand etc., for enabling Panchayat Raj Institutions to make repayment.(c)The project should be in a position to repay the investments made on it including interest installments within a period of 8 years from the date of last release.(d)At least 25% of the outlay should be self financed and the balance should be borrowed from either a bank or a financial Institution.(e)The Panchayat Raj Institution should prepare statement of its receipts and expenditure for the 3 preceeding years during which the application is submitted and it should generate additional resources from the project scheme to meet the loan and interest portion within the time allowed by the bank.(f)The financial statements submitted by the Panchayat Raj Institutions shall be got scrutinised by the Accounts Officer of the Zilla Parishad and countersigned by the Audit Officer of the Local Fund, Audit Department.(g)Before the project is submitted to Government for approval the same may be circulated to the Bank to seek its opinion.(h)Every proposal shall be approved by the Government who will recommend to the bank or financial institution, about the vability of the proposal, the credit worthiness of the institution, the quarter of finding required and the manner in which it is to be released.
