Karnataka Water and Sanitation Pooled Fund Trust (KWSPFT) within the meaning of Indian Trust Act 1882 duly constituted by the Deed of Trust was established on 12th Sept. 2003. KUIDFC is the Fund Manager to the Trust. Trust is a State Level Pooled Fund entity recognized by Govt. of India.

Project Objective

1.To establish finance structure by availing low cost funds by mobilizing resources under Pooled Finance Scheme for Urban Infrastructure Project.

2.To enable market access for ULBs to implement Infrastructure Projects with a cost effective Pooled Finance.

3.To guarantee the performance of any contract or payment of any bond issue and resources mobilized under Pooled Finance Structure.

4.To invest any money of the Trust in any investment as may be thought proper and fit and to use the income from such investment to fulfill the objective of the Trust

5.To act as ‘Nodal Agency’ on behalf of Central and State Government

Major Works

    1.Raised tax free Bond amounting to Rs. 100.00 Crore to provide Water Supply and Drainage to surrounding 8 ULBs around under GBWASP scheme, Bengaluru through BWSSB.

    2.Raised resources for Government of Karnataka to implement schemes such as:

    •Chief Minister’s Small and Medium Town Development Programme (CMSMTDP) Phase-I and Phase-II and

    •Chief Minister’s Special Grants of Rs.100 crore each to City Corporations under Nagarothana Scheme in Phase-II and Phase-III

    •Over all an amount of Rs.2,300.00 core Loans has been raised for these schemes up to November 2018.

Future Plans

1) Proposal to raise Rs. 350 Crore Tax Free Bond / Bank Loan for ULBs for Karnataka Urban Water Supply Modernization Projects (KUWSMP) to provide 24X7 Water Supply in Belgaum, Hubli-Dharwad & Gulbarga

2)Raise Rs.100 crore loans to fund water supply projects in 9 towns.

Urban Infrastructure Development Fund (UIDF)

Urban Infrastructure Development Fund (UIDF):

UIDF comprises of corpus of re-payment of principal and interest by various ULBs for loans availed under KUIDP, KUDCEMP, JnNURM and other projects. (Corpus of the fund is Rs. 687.07 crore as at the end of November - 2018). The objective of the UIDF is to finance Urban Infrastructure projects such as Commercial, Semi-commercial and social.

All ULBs and statutory bodies designated to promote infrastructure projects are covered under the scheme for need based finance.

Generally projects costing up to 100 crore are eligible and repayment period will be up to 15 years.

UIDF assistance to supplement market borrowings and ULBs own contribution.

Economic and financial viability-primary consideration with threshold IRR/ERR.

Various incentives to ULBs by way of interest rebate is provided for prompt payment and implementation of the reforms.

The interest rate charged for projects is linked to SBI MCLR rates and are detailed below:

    1) Commercial below 2% of SBI MCLR rate 2) Semi-commercial 2-3% of SBI MCLR rate 3) Social 3-5% below of SBI MCLR rate

Evaluated Visibility

    42 projects emanating from various ULBs have been assessed and analyzed by Transaction Advisors for working out economic feasibility of the projects.

    Of these 10 proposals have been cleared (One under PPP) and (9 under UIDF assistance). Total loan sanctioned for projects under EPC is to the tune of Rs.64.19 crore as against the project cost of Rs.159.41 crore.

    Besides, the above studies in respect of a few projects are currently underway and they will be further possessed upon submission of report by our consultants/ Transaction Advisors/ULBs.

    The total UIDF Corpus as on 30.11.2018 was Rs. 687.07 Crore.