Equipment Finance scheme:

• Purpose: For financing identifiable equipment for replacement/ modernisation /expansion /diversification and also balancing equipment

• Eligible units :Units in operation for 3 years and earning profit in past 2 years

• Loan limit: need based

• Debt equity ratio:3:1(overall 1.5:1 maximum)

• Repayment period :maximum 5 years including moratorium upto 1 year

• Effective Interest Rate: 11% (net of rebate for timely repayment)

Technology development and modernization scheme:

• Purpose: To encourage SSI units to modernize and adopt improved/updated technology

• Cost of the scheme to include:

  • Cost of capital equipment, need based land & civil works

  • Cost of technical know-how, designs, drawings and fashion forecast relevant to specific product group

  • Upgrading process technology and product with thrust on quality improvement comparable to acceptable standards

  • Cost of TQM, cost of ISO 9000 series certification

  • Need based additional margin money for working capital

  • Preliminary and pre-operative expenses shall not form part of project cost

• Eligibility

  • Existing SSI units in operation for at least 3 years.

  • Outlay on land & building not to exceed 25% of the proposed scheme

  • Units graduating out of SSI sector are also eligible

• Project Cost: maximum Rs.100 lakhs

• Debt Equity ratio: overall 2:1(maximum)

• Promoters' contribution: minimum 20%

• Repayment period: maximum 5 years including moratorium upto 1 year

• Interest rate: 10% p.a.

• Purpose: To promote quality management systems in SSI units and to strengthen marketing and export capabilities

• Cost of the scheme to include: Expenses incurred for acquiring ISO 9000 certification including consultancy, documentation, audit, certification fee, equipment and calibrating instruments

• Eligible Units: in operation for 4 years and earning profit in past 2 years

• Project cost and loan limit: need based

• Debt Equity ratio: overall 2:1(maximum)

• Repayment period: maximum 5 years including moratorium upto 1 year

• Interest rate: 10% p.a.

Electro-medical equipment, tourism related activities - hotels, amusement parks etc.

Rehabilitation assistance scheme
purpose: To revive potentially viable sick units

• Guideline for Sick SSI Unit: - An SSI unit is classified as sick when any of its borrowal account become a doubtful advance, i.e. account remains overdue for a period exceeding 21/2 years

AND/OR  

• peak net worth over preceding two accounting years is eroded to the extent of 50% or more by way of accumulated cash losses

Scheme to include:

• Capital costs for diversification/modernisation, cost of renovation/ up-gradation, balancing equipment etc.

• Payment of statutory liabilities and pressing creditors

• margin money for additional working capital requirement

• start up expenses and funding of cash losses during nursing period

• Funding of overdue and re-scheduling of existing loans at concessional rates

• Need based bank finance for working capital including funding of past irregularities

• Promoters' contribution: minimum 20% of cost of the scheme

Guideline for Sick non-SSI Units:
-Sick units registered with BIFR, can avail finance under the scheme prepared by OA and approved by BIFR

One Time Settlement Scheme - 2003-04 (PDF file - 579 KB)