1Q. Definition of the Land availability/Land allocation
Land is considered to be available with the RSETI only when it is in actual possession
of the land. In a nutshell, the NIRD will be in a position to release the funds
only on the submission of the land possession documents.
2Q.Land allocated but the ownership is not transferred. Ownership still remains
either with the State Govt/DRDA and other conditions
Yes, provided that the Banks and the respective State Governments sign Memorandum
of Understanding with regard to the land allocation. For Ex: State Bank of India
and the State Government of Gujarat has entered into an MoU for setting up the RSETIs.
3Q.Minimum criteria with regard to the land
Minimum 1 acre of land is required. Guidelines do not speak about the minimum one
acre land but only 8000 sq ft build up area. (1 acre = 43560 sq feet)
4Q. Proposal to establish more than one RSETI in the same district
Regarding the proposal to establish more than one RSETI in the same district, it
was decided in the First NLSC to restrict the funding to one RSETI in one district
till all the districts are covered in the country.
5Q. Necessity for opening the Separate Account for each RSETI at the district
Yes, it is advised and the reason being clarity in fund utilization, accountability
6Q. Utilization of Rs.10 lakh (Amt released to meet the hiring expense) for
other purpose such as Renovation, Repairs, Furniture and Fixtures etc.
The amount should be utilized only to meet the expenditure incurred on the hiring
of premises. Remaining amount should be utilized for permanent infrastructure creation.
7Q. Debiting of preliminary expenses in the account opened for RSETI (10 lakh
Only those expenses which have been incurred after the issuance of the Sanction
order can only be debited to the RSETI account. Any expenses incurred prior to the
issuance of the sanction order cannot be debited.
8Q.Permissibility of long term lease
Situation: In situations where the State Governments are not in
a position to provide land to the RSETIs on free of cost basis as per their policy,
long term lease is a possible solution.
Land on long term lease: The RSETIs, which have obtained the land
on long term lease from the State Government/implementing Bank, are only eligible
for the financial support of the MoRD under this scheme.
Lease period: The Lease period should preferably be for 90 years
with minimum of 33 years.
Free of Cost/Nominal charges: Land should be provided by the State
Government/Implementing Bank either free of cost or at a cost not more than 10%
of the reserve price of the land if the Banks are willing to pay.
Creation of Permanent Infrastructure: One time funding support,
up to a maximum of Rs. 1 crore will be provided in two installments for creating
permanent infrastructure, as mentioned below.
First installment of Rs. 50 Lakh will be released upon submission of a copy of lease
agreement documents by the Bank.
Second installment of Rs. 50 lakh will be released, once the construction reaches
the lintel level stage.