Compressed Bio Gas under SATAT Scheme - Business
Compressed Bio Gas under SATAT Scheme
Purpose
- To part-finance setting up of Compressed Bio-Gas (CBG) plants under Sole Banking Arrangement with our Bank.
Features
- Nature of Facility:
- Term Loan, Working Capital
- Quantum of loan:
- Need based
- Debt : Equity
- Min. 70 : 30
- Loan to Value (LTV) :
- 70
- Margin:
- Term Loan: Min. 30% of Project Cost.
- Project cost shall include all components including margin money for Working Capital as per Bank guidelines on financing Term Loan / Project loans.
- Working Capital: Min. 25%
- Pricing:
25 bps concession over and above the extant card rates.
- Primary Security:
- Term Loan:
- Exclusive charge on entire project assets including immovable assets, movable assets, cash flow, Commercial Agreement and Escrow accounts, DSRA/ISRA etc.
- An Escrow account shall be maintained by the CBG Plant owner in which all sales proceeds received from the OMCs from sale of CBG and Bio-manure will be credited. Payment will be made as per usual waterfall mechanism. The proceeds in the Escrow account shall be appropriated first towards Bank’s term loan repayment.
- Working Capital:
- Hypothecation of Stocks & Receivables
- Collateral Security:
- Pledge of shares: (In case of companies)
- 51% of shares of the borrower to be pledged where Security Trustee is available. In other cases, as per Bank’s extant guidelines.
- In rare cases where mortgageability of lease-hold land is not possible, equivalent amount of collateral to be obtained.
- Personal / Corporate Guarantee:
- Personal Guarantee of all the Promoters
- Corporate Guarantee of the Parent Company in case of SPV / Joint Ventures.
- Repayment Period:
- Repayment tenor:
- The overall door-to-door tenor (moratorium + repayment tenor) not to exceed tenor of offtake agreement, which is 15 years and may be extended on mutual consent. For Renewable Energy projects, overall door-to-door tenor permissible is upto 15 years.
- Moratorium:
- Construction period / Achievement of COD: 12 – 18 months
- Moratorium after COD: 1 year
- Interest to be serviced during moratorium.
Target Group & Eligibility
- Entrepreneurs who have been awarded Letter of Intents (LOIs) by Oil 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.
Last Updated On : Tuesday, 19-07-2022

Interest Rates
2.70% p.a.
less than Rs.10 Cr. w.e.f 15.10.22
3.00% p.a.
Rs.10 Cr. and above w.e.f 15.10.22
2.70% p.a.
Balance below Rs. 10 crs
3.00% p.a.
Balance Rs. 10 crores and above
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Compressed Bio Gas under SATAT Scheme

Criteria
- Features
- Eligibility
- Terms and Conditions

Interest Rates
2.70% p.a.
less than Rs.10 Cr. w.e.f 15.10.22
3.00% p.a.
Rs.10 Cr. and above w.e.f 15.10.22
2.70% p.a.
Balance below Rs. 10 crs
3.00% p.a.
Balance Rs. 10 crores and above