Scheme for Financing Compressed Biogas (CBG)

Benefit
Features
Eligibility Criteria
Documents Required
Fees & Charges
Most Important Terms and Conditions (MITC)

Scheme for Financing Compressed Biogas (CBG) : Benefit

Compressed Bio Gas Plant with minimum designed capacity of CBG Plant is 2.0 Tons per day can be financed.
Competitive Rate of Interest.

Scheme for Financing Compressed Biogas (CBG) : Features

Loan for setting up of Compressed Bio Gas Plant.
Type of Facility available: Working Capital, Term Loan, Bank Guarantee or LC

Scheme for Financing Compressed Biogas (CBG) : Eligibility Criteria

Eligible Projects: Compressed Bio gas plant across India with minimum designed capacity of CBG plant is 2.0 Tons per day.
Eligible Beneficiaries: Entrepreneurs viz. Sole Proprietorship, Partnership, Limited Liability Partnerships, Companies and cooperatives societies and other constitution of borrowers permissible by Ministry of Petroleum and Natural Gas who have been awarded Letter of Intents(LOI) by Oil Marketing Companies (OMC) for production and supply of Compressed Bio Gas (CBG).

Scheme for Financing Compressed Biogas (CBG) : Documents Required

Application Form
Two Passport sized Photographs
ID Proof like Driving License, Aadhaar Card, Voter ldentity Card, passport etc.
Document stating Land holding details duly certified by the Revenue authorities/Online Land Records
Letter of indent issued by MNRE

Scheme for Financing Compressed Biogas (CBG) : Fees & Charges

Unified Processing Charges as applicable from time to time.

Scheme for Financing Compressed Biogas (CBG) : Most Important Terms and Conditions (MITC)

Purpose	A financing scheme to set up a Compressed Biogas Plant.
Eligible Projects	Compressed Bio Gas plants across India with a minimum design capacity of CBG plant i.e., 2 tons per day.
Eligible beneficiaries	Entrepreneurs viz., sole proprietorship, partnerships, limited liability partnership, companies and cooperative societies and other constitution of borrowers permissible by Ministry of Petroleum and Natural Gas who have been awarded Letter on Intents (LOI) by Oil Marketing Companies (OMC) for production and supply of Compressed Bio Gas (CBG).
Margin	Working Capital: 25% Term Loan: 30%
Loan Tenure & Repayment	Term Loan to be repayable in 10 to 15 years (Including moratorium period of Minimum of 6 months and Maximum of 2 years period). Repayment: Monthly/Quarterly based on the cash flow of the project.
Security	Exclusive charge over entire project assets including immovable assets and movable assets. Hypothecation of stock and book debts. Personal/corporate guarantee of proprietors/ Partners/ Promoters/ Directors/ Parent Company etc. Charge over the Escrow Account in favor of the lenders. Assignment or creation of charge on commercial agreement.
Rate of Interest	Applicable rate of interest for accounts having aggregate limit up to Rs. 50 crores. Rate of interest ranging from BRLLR+SP+0.50% to BRLLR+SP+5.40% based on internal credit rating and immovable property security coverage (including both primary and collateral immovable properties). Applicable rate of interest for accounts having an aggregate limit above Rs. 50 crores and up to Rs. 100 crores. The rate of interest shall be charged @1% over and above the rate of interest applicable to accounts having an aggregate limit up to Rs. 50 crores. Applicable rate of interest for accounts having an aggregate limit above Rs. 100 crores and up to Rs. 100 crores . As per the classification of account vis. MSME/corporate advances.
Subsidy	As per the notification of the Ministry of New and Renewable Energy, Central Finance Assistance (CFA) of Rs. 4 crores per 4,800 Kg of CBG per day generated from 12,000 cubic meters of Biogas per day with a maximum of Rs. 10 crore per project.