Compressed Bio Gas under SATAT Scheme - Business

Features

• Target Group :
  • 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.
• Facilities Available :

  Term Loan, Working Capital

• Quantum of Loan :

  Rs.50 Crores Max. (to be handled by R&DB) Above Rs.50 Crores (to be handled by CCG)

• Pricing :

  Attractive Interest rates based on rating of the Borrower/ External Rating or as per Scheme Specific Rating (if applicable) or as per extant guidelines of the Bank.
  EBR (Linked to Repo Rate and Currently EBR is Repo Rate + 2.65%) linked (for MSMEs) & 6 months MCLR linked (for Non-MSMEs)

• Borrower's Margin / Contribution :
  • 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%
• Repayment Period :
  • Repayment tenor: Term loan repayable in 10-12 years. DCCO to be clearly documented / recorded. 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.
    Operating unit should also examine availability of tail period at the time of analyzing the financial model and commercial viability of the project.
• Processing Fee/ Upfront Fee :

  As per Bank's extant guidelines

• Other Charges :

  NA

• Special Feature :

  The CBG projects shall be financed through a few identified SME Intensive Branches in each Circle to develop the expertise and improve the turnaround time (TAT). Circles may identify and designate few Branches for the Product