|
Purpose:
For acquiring/adopting Energy Saving Equipment and Energy Conservation Measures.
Eligibility:
Saving on energy costs should be at least 150% of cost of servicing the proposed term loan. Units should possess energy audit report (to be obtained at their cost initially) issued by energy consultant/auditor accredited by Bureau of Energy Efficiency, PCRA etc. or must have carried out similar assignment for other reputed companies.
Quantum of Loan
Upto 80 % of Project Cost, subject to a Maximum of Rs.1 crore. The cost of equipment, cost for effecting modifications to the existing Plant & Machinery, re-engineering the manufacturing process, and Interest during the implementation period are included.
Project cost would also include Consultancy / Management fees, cost of energy audit (once it is found that there is scope for substantial reduction in the energy costs).
Overall Debt Equity of the unit (including this loan) should not exceed 4:1 for SSI and 3:1 for Medium Sector units.
Repayment Period
Within 7 years including moratorium period of not more than 6 months. Can be extended upto 10 years in exceptional cases. Average DSCR should be 1.3.
Security
--Hypothecation of equipment purchased.
--Extension of charge on existing assets, wherever available.
--Energy Services Agreement (with ESCO) with Performance Guarantee by the ESCO, wherever the services of an ESCO are engaged.
--Eligible Loans to SSI units to be covered under CGFTSI Scheme
|