Industrial Investment Promotion Scheme of State Govt. (Audhyogik Nivesh Protsahan Yojna)
In order to bridge the gap in working capital in initial years of the large & medium scale units State Govt. has formulated a scheme known as Audyogik Nivesh Protsahan Yojna in the year 2003. UPFC has been nominated alongwith PICUP as Operating Agency for implementation of the said scheme. The salient features of the scheme are as under :-
1. ELIGIBILITY :
Under this scheme Interest free loan is granted to eligible Mega units which have invested ` 5.00 Crores or more in fixed assets for setting up new unit in Food Processing or live stock sector or ` 10.00 Crores or more in any sector in Bundelkhand/Purvanchal districts of the State or ` 25.00 Crores or more in any sector in any other districts & the date of first sale from above new capital investment is on or after 11.3.2003.
UPFC shall grant the Interest free loans to the eligible Mega units as per following limits of the new capital investment made by them :
1. Food processing or Live stock units
New capital investment
Rs. 5 to 15.00 crores.
2. Electronic units in any district
New capital investment
Rs. 10 to 15.00 crores.
3. Purvanchal & Budelkhand Districts
New capital investment
Rs. 10 to 15.00 crores.
4. Other than above in Any other sector of Distt.
New capital investment
Rs. 25 to 30.00 crores.
UPFC can grant loans under the scheme to its financed units above the capital investment limits as mentioned above by taking NOC from PICUP provided it is in the interest of the concerned industry/Corporation/work.
2. Quantum of Loan :
The amount of Interest free loan granted under this scheme shall be minimum of 5% & maximum of 10% of the Annual sales of the unit but same shall not be more than the CST & UPVAT deposited by the unit in any financial year. However, this restriction shall not be applicable to the units whose date of first sale is between 11.3.2003 to 5.11.2003.
3. Pioneer unit :
Pioneer unit is such eligible Mega unit which is first unit set up in the district qualifying the eligibility criteria of the scheme. It is declared as Pioneer unit by the concerned D.M. of the district on the recommendation of the Committee consisting of D.M. as Chairman, GM, DIC of the concerned district as member secretary & Nominated officer of the Commercial Tax Deptt.
4. Availment period of Loan :
The eligible mega unit shall be granted each year Interest free loan for the total period of 10 years and in the case of Pioneer unit Interest free loan shall be granted for 15 years.
5. Repayment period of Interest Free loan :
Repayment period of Interest free loan shall be 07 years from the date of the disbursement and in case of Pioneer units it shall be 10 year.
6. SECURIY :
As per decision of the Board of the Corporation all fresh loans shall be granted as per security norms given below however for existing loans i.e. loans granted before 31.12.2008, security debt ratio of 1:1 shall be maintained :-
"a) Land, Building and Machines are available for creation of charge: -
1. If an eligible unit creates first charge (exclusive or pari-passu) on fixed assets viz, land, building, plant & machinery etc. the security debt ratio shall be maintained not less than 1.25 times.
2. If an eligible unit creates second charge (exclusive or pari-passu) on fixed assets viz, land, building, plant & machinery etc. the security debt ratio shall be maintained not less than 1.5 times.
b) If Land or Land & Building is not available for creation of charge: -
1. If an eligible unit creates first charge (exclusive or pari-passu) on fixed assets excluding land or land & building (where only plant & machinery is available for creation of charge) the security debt ratio shall be not less than 1.5 times. In addition to this first charge party shall provide additional security in the form of Collateral Security, Bank Guarantee (Nationalised Bank) or FDR equivalent to 25% of loan amount to cover the risk.
2. If an eligible unit creates second charge (exclusive or pari- passu) on fixed assets excluding land or land & building (where only plant & machinery is available for creation of charge) the security debt ratio shall be not less than 1.5 times. In addition to this second charge party shall provide additional security in the form of Collateral Security, Bank Guarantee (Nationalised Bank) or FDR equivalent to 50% of loan amount to cover the risk."
7. Administrative Charges :
The unit shall have to deposit Administrative charges @ 2% of sanctioned amount each year before disbursement of loan.