Scribd
Upload
450 views3 pages

PNB Compressed Bio Gas

The document outlines the terms and conditions of Punjab National Bank's loan scheme to finance the setting up of Compressed Bio Gas plants under India's Sustainable Alternative Towards Affordable Transportation initiative. Key eligibility requirements include obtaining a letter of intent from an oil marketing company. Loans cover term loans, working capital, and non-fund based limits from 1-100 crore rupees. Security includes charges on project assets and cash flows, with interest rates and margins as per the bank's policy.

Uploaded by

freesites485
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
450 views3 pages

PNB Compressed Bio Gas

The document outlines the terms and conditions of Punjab National Bank's loan scheme to finance the setting up of Compressed Bio Gas plants under India's Sustainable Alternative Towards Affordable Transportation initiative. Key eligibility requirements include obtaining a letter of intent from an oil marketing company. Loans cover term loans, working capital, and non-fund based limits from 1-100 crore rupees. Security includes charges on project assets and cash flows, with interest rates and margins as per the bank's policy.

Uploaded by

freesites485
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

MSME & MID CORPORATE CREDIT DIVISION, HEAD OFFICE

WING ‘B’, 4TH FLOOR, SECTOR 10, DWARKA, NEW DELHI -110075

SN PARTICULARS DESCRIPTION
1. Name of the PNB COMPRESSED BIO GAS (CBG) UNDER
Scheme SUSTAINABLE ALTERNATIVE TOWARDS
AFFORDABLE TRANSPORTATION (SATAT )SCHEME

2. Purpose For Financing towards setting up of Compressed Bio Gas


(CBG) plants.

3. Eligibility  Entrepreneurs viz Sole Proprietorship, Partnerships, Limited


Liability Partnership, Companies, Co-operative Societies 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.
 The minimum designated capacity of a single CBG Plant
shall be 2.0 Tonnes per day of CBG

4. Classification of As per latest RBI’s guidelines on ‘Priority Sector Lending’


Advance vide Master Directions dated 4th September 2020 (Updated
as on 31.05.2021), an aggregate sanction limit upto Rs.100
crore loans to entrepreneurs for setting up Compressed Bio
Gas plants has been included in PSL under Agriculture
Infrastructure.
5. Nature of facility  Term loan
 Working capital
 Non-fund based limit
6. Quantum of Minimum –1 Cr
Loan Maximum - Need Based
7. Margin  Term Loan: Min 30% of Project cost
 Working Capital: Min 25%
 Non-Fund based limit: Min 15% Cash margin
8. Rate of Interest & As per Bank’s extant policy
Concessions
Concessions in ROI :
 A Concession of 0.25% on Card rate shall be applicable
 Collateral linked Concession shall be applicable

Page 1 of 3
PNB COMPRESSED BIO GAS (CBG) UNDER SUSTAINABLE ALTERNATIVE TOWARDS AFFORDABLE
TRANSPORTATION (SATAT)
“Confidential. Strictly for internal circulation only”
PUNJAB NATIONAL BANK
MSME & MID CORPORATE CREDIT DIVISION, HEAD OFFICE

SN PARTICULARS DESCRIPTION
9. Primary Security Term Loan
 Exclusive charge on entire projects assets including
immovable assets, movable assets, cash flow,
Commercial agreement and Escrow accounts, DSRA
 An escrow account shall be maintained by the Borrower
in which all sale proceeds received from OMCs from
sale of CBG 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 Stock & Receivables

10. Collateral NIL


Security
In exceptional cases where mortgageability of lease-hold
land is not possible, equivalent amount of collateral
(SARFAESI enabled) to be obtained.

11. Repayment tenor Term Loan


 Upto 12 years including moratorium period of upto 24
months on merits.
 The DCCO to be clearly documented / recorded
 The overall door-to door tenor (moratorium + repayment
tenor) shall not exceed the tenor of offtake agreement,
which is 15 years and may be extended on mutual
consent.

 Availability of sufficient tail period to be determined as


part of commercial viability of the project during credit
appraisal. The same shall be in line with LOI issued by
OMCs
Working Capital- 12 months subject to annual renewal of
limits
12. Moratorium  Moratorium upto 24 month including Construction Period/
Achievement of COD upto 18 month.
 Interest during construction period may be capitalised
and must be part of project cost as per the Bank’s extant
Page 2 of 3
PNB COMPRESSED BIO GAS (CBG) UNDER SUSTAINABLE ALTERNATIVE TOWARDS AFFORDABLE
TRANSPORTATION (SATAT)
PUNJAB NATIONAL BANK
MSME & MID CORPORATE CREDIT DIVISION, HEAD OFFICE

SN PARTICULARS DESCRIPTION
guidelines, presently conveyed vide IRMD LA Circular 49
dated 30.03.2020.

 Interest during Moratorium after COD has to be served


13. Upfront Fee/ As per Bank’s extant guidelines
Processing
/Documentation/
Other charges
14. Insurance Comprehensive Insurance cover for all securities i.e. stock/
fixed asset / mortgaged property including Fire Insurance
and Transit Insurance be obtained in joint names of the
Bank and Borrowers with agreed Bank clause.

15. Pre- Execution of Commercial Agreement between Project


disbursement Developer (Seller) and OMCs (Buyer) containing important
Conditions to be clauses like offtake commitment, tenor of offtake agreement,
complied under price fixation modalities, creation of Charge on Commercial
the scheme Agreement, Termination of Agreement, Substitution of
Rights, Project Completion Time etc.

Statutory Clearances / Approvals :


i. All Government guidelines/ Statutory Approvals/
Clearances required for setting up CBG plat including
environmental clearance to be obtained. Major indicative
clearance required are :
a. Consent to establish & Operate from Central
Pollution Control Board
b. Consent to establish & Operate from
Petroleum and Explosives Safety Organization
c. Factory related licenses
d. NOC from District authorities
ii. The required clearances/ approvals should be in place,
before disbursement of 1st tranche of the sanctioned
credit facilities.

iii. In case any credit proposal is sanctioned based on LOI


only, first disbursement should be made only after
receiving offtake agreement duly vetted by Law officer
at ZO.

Page 3 of 3
PNB COMPRESSED BIO GAS (CBG) UNDER SUSTAINABLE ALTERNATIVE TOWARDS AFFORDABLE
TRANSPORTATION (SATAT)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy