INCENTIVE FUND

In the 74th Board of Directors meeting held on 29-03-2008, the Board has approved to pay 0.75% of the interest rate charged on the loan given to the local bodies as incentive to those local bodies who cleared their entire dues for the year 2006-07 before 31-03-2007 under TUFIDCO’s Infrastructure Funding Scheme. The Board has also decided that the rebate amount be and hereby transferred to TUFIDCO Incentive Fund” under TNUIDRF and that ULB wise accumulated rebate be used as a grant for the concerned Urban local Bodies towards their contribution for the projects under UIDSSMT/JNNURM or other Urban Infrastructure Development Projects”.

Based on Board’s approval TUFIDCO had sent a proposal to Government to maintain the Incentive Fund as one of the components of Tamil Nadu Urban Infrastructure Renewal Fund.

In Govt. Order No.(Ms).No.117, MAWS (MA2) Dept., dated 18.06.2010 Government granted the permission to maintain the incentive fund as one of the components of Tamil Nadu Urban Infrastructure and Renewal Fund. Rebate amount in this fund generated Rs.117.34 lakhs and interest earned up to 31-03-2010 is Rs.21.80 lakhs. Total accumulated fund available Rs.139.14 lakhs under incentive fund.