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 level

Yes, it is advised and the reason being clarity in fund utilization, accountability and monitoring.

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 / 1Crore).

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.