Compressed Bio Gas plant financing under Sustainable alternative towards affordable Transportation
Compressed Bio Gas plant financing under Sustainable alternative towards affordable Transportation
Compressed Bio Gas plant financing under SATAT (Sustainable alternative towards affordable Transportation)
| Name of the Scheme | Compressed Bio Gas Plants across India with minimum designed capacity of CBG plant is 2.0 Tons per day under SATAT ( Sustainable alternative towards affordable Transportation) | ||
| Purpose | For setting up of Compressed Bio-gas plant | ||
| Target Group & Eligibility | • Entrepreneurs viz. Individual/Sole proprietor, partnership, Companies and cooperative societies who have been awarded Letter of Intents (LOIs) by Oil & Gas Marketing Companies (OMCs) for supply of Compressed Bio Gas under SATAT Scheme. | ||
| • Obtention of LOI from OMCs is a pre-condition for processing the loan. | |||
| Nature of facility | · Term Loan | ||
| · Working Capital | |||
| · Non-fund based limit | |||
| · LC | |||
| Quantum of Loan | Up to Rs.100 Cr per borrower from the banking system can be classified under Priority Sector-Agriculture- | ||
| Tenor of Loan | Term Loan: The Term Loan to be repayable in 10-15 years. | ||
| Moratorium | The moratorium of minimum of 6 months and maximum of 2 years. | ||
| Margin | Term Loan: 25% | ||
| Working Capital: 30% (Min) | |||
| LC: 10% | |||
| BG:10-25% (Performance Guarantee) | |||
| Rate of Interest & Concessions | Rate of Interest linked to MCLR. | ||
| Min ROI: MCLR (8.95%) + Spread (1.75%) = 10.70% | |||
| Max ROI: MCLR (8.95%) + Spread (4.50%) = 13.45% | |||
| Primary security | The primary Security value of a minimum of 133% of the limit, including Hypothecation of stocks/book debts/machinery / EM of factory land & building/charge on assets created out of Bank finance. | ||
| Collateral security | |||
| Types | Collateral Value | ||
| Wherever Commercial agreement is available | Nil | ||
| If Commercial agreement is not available. | Minimum 50% of the sanctioned limit to be obtained. | ||
| In case where mortgage ability of lease-hold land is not possible and without commercial agreement. | An equivalent amount of collateral to be obtained for the sanctioned limit. | ||
| ***Note: Wherever sufficient collateral is not available, the branch shall obtain Hybrid model security, by covering CGTMSE coverage up to Rs.5.00 Cr. (Including-Convergence under AIF is eligible up to Rs.2.00 Cr) | |||
| Central Financial Assistance | The Ministry of New and Renewable Energy (MNRE) has notified Central Financial Assistance (CFA) of Rs. 4 Crores for plant producing 4.8 ton per day of CBG (i.e 1200 Cubic Meter of Bio gas per day) capped to with a maximum of Rs 10.00 Crore per project.
The developers seeking Government support for their projects will submit proposals to Ministry through Bank/Financial institutions (on BIOURJA portal: https/biourja.mnre.gov.in). |
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