Scheme Objective
To provide financial assistance for setting up of facilities for manufacture of Biomass Pellets / Briquettes / RDF, which in turn promotes processing of agriculture crop residues / MSW in an economic way and supports sustainable environment.
Eligible Entities
As per Financing Norms of IREDA.
Projects Eligible for Assistance
All the commercially viable Biomass Pellets / Torrefied Pellets / Briquettes / RDF manufacturing plants.
Minimum Loan & Promoter Contribution
The minimum loan eligibility from IREDA will be Rs. 50 Lakh. The minimum promoter contribution shall be 30% of the project cost.
Quantum of loan from IREDA shall be linked to the project cost as per the following table:
| Project Cost | Loan Amount as % of Project Cost |
|---|---|
| Up to Rs. 5 Crore | Up to 70% |
| More than Rs. 5 Crore & up to Rs. 10 Crore | Up to 60% |
| More than Rs. 10 Crore | Up to 50% |
Interest Rate
The applicable interest rate will vary and depends on the grade of the project as per IREDA Credit Risk Rating System (CRRS), applicable to Biomass Power.
Interest rates are revised from time to time as per IREDA's internal process through interest rate fixation committee.
Interest rates prevailing at the time of each disbursement shall apply.
Repayment Period & Moratorium
- The repayment period shall be a maximum of 6 years, depending on the project cash flows & DSCR of the project.
- Repayment shall commence after the implementation & moratorium period.
- The moratorium period shall be up to 12 months from the date of COD of the project.
Securities
- Company shall provide exclusive charge or pari passu charge in case of co-financing, by way of equitable mortgage and on plant & machinery by way of hypothecation of movable assets of the project.
- Pledge of shares (minimum 51%) of the applicant company.
- One or more additional securities such as mortgage of collateral security, Corporate and/or Personal Guarantees, 3rd party Guarantee, Deposit of PDCs, Demand Promissory Note, BG/FDR for not less than 10% of loan etc., may be provided to the satisfaction of IREDA.
- Revenue from sale of pellets / briquettes / RDF should be routed through TRA and provide exclusive charge on Trust & Retention Account (TRA). In place of exclusive charge, sharing on pari-passu charge in case of co-financing may be allowed.
- Any other security, as may be feasible.
Fees and Charges
As per Financing Guidelines of IREDA.
General Conditions
- 1 The site-specific Biomass resource availability / Survey Reports to be provided.
- 2 Market Survey reports indicating the potential buyers of Pellets / Briquettes around the site.
- 3 The borrower shall provide all information and documents reasonably required in connection with the procurement of any goods, services and works to be financed by IREDA, as per the established commercial practices.
- 4 The subsidy / grant, if any given by the Central Government / State Governments shall be adjusted against loan sanctioned by IREDA.
- 5 The interest subvention / interest subsidy, if any given by State / Central Govt., will be passed on to the project.
- 6 Other terms and conditions shall be as per prevailing Financing Norms / Guidelines of IREDA.