In brief
PMA versus LIE, what portfolio monitoring for a housing-finance company or an EPC contractor involves, and the reporting that keeps a large exposure under control.
A Project Monitoring Agency (PMA) monitors a portfolio of projects for a lender — typically all projects financed for one borrower group, or all project-finance accounts above a threshold — and reports on each one every month.
How is a PMA different from an LIE?
An LIE is engaged per project. A PMA applies the same discipline across many projects at once, with a consolidated dashboard so the lender can see portfolio-level exposure: which projects are on schedule, which are overrunning, and where money released is ahead of work done.
What does portfolio monitoring involve?
- A baseline for every project: approved cost, schedule, drawdown plan
- Monthly site visits by engineers, not desk reviews
- Certification of drawdown requests against measured progress
- Escrow and fund-utilisation checks (particularly for real-estate accounts under RERA)
- A consolidated monthly report with a red/amber/green status per project
- Site verification40%
- Fund-flow reconciliation25%
- Reporting and dashboards20%
- Approvals and compliance15%
Illustrative split of effort across a portfolio monitoring engagement.
Examples
Kakode & Associates has acted as PMA for State Bank of India across 36 DHFL-financed real-estate projects (₹20,000 crore), 40 KKR India Asset Finance projects (₹8,150 crore), ten Shapoorji Pallonji projects (₹13,730 crore) and ten Afcons Infrastructure projects (₹14,000+ crore) including metro, expressway and tunnel works. See Lenders’ Independent Engineer & Project Monitoring.
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