Guarantee Application process

The IA shall be required to follow the due process and appraisal guidelines/norms as contained herein prior to issuance of PRGFEE guarantees in favour of the PFIs. Once IA approves the project for issuance of PRGFEE guarantees, it shall either issue PRGFEE guarantees by itself or instruct the relevant bank appointed by it to issue the PRGFEE guarantees in favour of the PFIs. The IA shall not be required to issue PRGFEE guarantees or incur any other financial obligation beyond the amount of PRGFEE fund available with it at any time. Broadly, the following steps would be followed with respect to issuance of PRGFEE Guarantees (unless otherwise permitted by the IA on a case to case basis):

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