2. National Equity
has been extended for application to the SSI units in the Metropolitan
areas with a view to enlarge the scope of scheme and to cover more beneficiaries.
The corporation adopted the scheme w.e.f. 15.02.2002 with result that
eligible projects under the scheme upto project cost of Rs. 50 lacs
can be facilitated to avail financial assistance at lower promoters
Contribution & lower effective interest rates. The parameters of
the scheme are as under:-
- New projects
in tiny and small scale sectors for manufacture, preservation or processing
tiny and small scale industrial units including those which have availed
of NEF assistance earlier, undertake expansion/ modernization/technology
upgradation/ diversification etc.
- All new
and existing service enterprises, including those which have availed
of NEF assistance earlier [except Road Transport Operators]. However,
in case of service enterprises, the assistance under NEF would be made
available only for acquisition of fixed assets.
- Sick units
in the tiny and small scale sectors including service enterprises which
are considered potentially viable.
which avail of any margin money or seed / special capital assistance
under the schemes of Central or State Government, State Financial Corporations
and other State level institutions or banks will not be eligible for
of refinance in respect of term loan for the project by SIDBI is a pre-requisite
for extending equity type assistance under the scheme.
cost [including margin money for working capital] should not exceed
RS 50 lakh in case of new projects. In case of existing units and service
enterprises, the total outlay, including the proposed outlay on expansion/
modernization/ technology uprgradation/ diversification or rehabilitation
should not exceed RS 50 lakh.
10 % of project cost.
65 : 35
or 1.857 : 1 [excluding State investment Subsidy]. However a flexible
approach may be followed in the case of rehabilitation proposals.
type assistance in the form of sort loan.
as may be required to meet the gap in equity as per prescribed debt
equity norm, after taking into promoters' contribution, subject of maximum
of 25% of project cost or RS 10 lakh per project, whichever is lower.
No interest is charged on the soft loan component except service charge
of 5% p.a. of which, PLIs would retain service charge of 1% p.a. ,
and remaining 4% should be passed on to SIDBI.
period 7 years ( including moratorium upto 3 years) for the soft
loan. The repayment period should be coterminous with repayment period
of normal term loan for the project. Whenever borrowers are making
repayments/ prepayments of term loan alone, the PLIs may insist on
repayment of soft loan and whenever soft loan repayments are not received,
the repayments/ prepayments so received may be proportionately adjusted
by the PLIs towards term loan and soft loan, payments to SIDBI may
correspondingly be made.
No security [including collateral] is to be insisted upon for the
projects covered under single window scheme can also be extended assistance
under NEF Scheme. NEF assistance in such cases would be restricted
to 25% of cost of the fixed assets (project cost less margin money
for working capital).
risk in respect of assistance out of NEF is shared equally by GOI
Stories | Winning
Edge | Online
Registration | Feedback