Particulars Scheme Guidelines
Purpose For setting up of Compressed Bio-Gas (CBG) plants.
Area of Operation All states and Union Territories.
Target Group & Eligibility Entrepreneurs who have been awarded Letter of Intents (LOIs) by Oil & Gas 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.
Nature of Facility Term Loan, Working Capital
Quantum of loan Up to Rs.100 Crores
Margin Term Loan: 15-25% 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: 15-25%
Eligible Rating Moderate risk and better.
Rate of Interest Competitive rate of interest is available on loans under the scheme
Processing fee/Service charges Processing/upfront fees applicable as per Agriculture Advances
Security
  • Hypothecation of Assets created out of our finance.
  • Post development security (Prime Security) value of minimum 133% of the limit, including the mortgage of land where the CBG plant is established. Exclusive charge on entire project assets including immovable assets, movable assets, cash flow, Commercial Agreement and Escrow Accounts.
  • Commercial agreement executed by Oil & gas marketing companies with LOI holders which contains escrow account clause. No additional collateral to be insisted. Escrow Agreement shall be executed between LoI holder (CBG Plant) & Lender. Lending Bank Branch has to forward the copy of the Escrow agreement to OMCs and has to obtain the acknowledgement from OMCs.
  • If Commercial agreement is not available collateral value of minimum 50% of sanctioned limit to be obtained
Repayment Period Term loan repayable in 10-15 years. Repayment of loan installments will be fixed based on the cash flow with suitable moratorium period.
Classification Priority Sector – Agriculture - Agriculture Infrastructure
Capital Subsidy – Subject to availability of Notification from MNRE , GOI and based on the performance of the project for atleast three consecutive months
  • The Ministry of New and Renewable Energy (MNRE) has notified Central Financial Assistance (CFA) for grant of 'In-Principal Approval' to Waste to Energy Projects as follows:
  • Rs. 4 Crores per 4,800 kg /day (For Bio CNG Generation from New Biogas Plants)
  • Rs. 3 Crores per 4800 kg/day (For Bio CNG Generation from Existing Biogas Plants)
  • Maximum CFA of Rs.10.00 Crores /project for both the cases.