export credit guarantee corporation of india ltd doc1

8/8/2019 Export Credit Guarantee Corporation of India Ltd Doc1

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LB0899533 Export Credit Guarantee Corporation

of India Ltd

Export Credit Guarantee Corporation of India Ltd was build to support the promotion of the

exports of an organization. It covers the risk of export on credit. ECGC was established in 1957.

Export Credit Guarantee Corporation is an export promotion company that works under the

command of the Department of Commerce, Ministry of Commerce & Industry and Government

of India. This organization is under the management of Board of Directors. The board consists ofrepresentatives of the Reserve Bank of India, Government, insurance, banking and exporting

community.

In terms of coverage of national exports, Export Credit Guarantee Corporation is the fifth leadingcredit insurer across the globe. ECGC offers covers of credit risk insurance to the exporters. It

also provides assurance to the financial institutions for the benefit of the exporters. For investing

in the joint ventures abroad it offers Overseas Investment Insurance to the companies of India.The investment is done in the form of loan or equity.

Export Credit Guarantee Corporation of India Ltd helps the exporters in various ways. Some ofthem include:

Offering insurance protection to exporters against payment risks

Making it easy to obtain export finance from banks/financial institutions Providing information on credit-worthiness of overseas buyers

Assisting exporters in recovering bad debts

Offering assistance in export-related actions

Making information available on different countries with its own credit ratings

Export credit insurance is necessary to avoid the risk factors of the exporters. It protects theexporters from the risks of payment and facilitates them to inflate their abroad trade with no fear

of loss.

Export Credit Guarantee Corporation of India Ltd offers various services and products to the

people. There are several credit insurance policies, guarantees to banks and special schemes aswell. Standard policies, small exporters policy, buyer exposure policy, software project polic


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Home | About CGTMSE | Scheme | Eligibility Criteria | Fees | Claims Settlement | Circu

Chairman's Message

CEO's Desk

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Instiutions

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CREDIT GUARANTEE FUND SCHEME FORMICRO AND SMALL ENTERPRISES

INDEX
http://www.cgtmse.in/default.aspxhttp://www.cgtmse.in/About_us.aspxhttp://www.cgtmse.in/schemes.aspxhttp://www.cgtmse.in/Eligibility_criteria.aspxhttp://www.cgtmse.in/Fees.aspxhttp://www.cgtmse.in/Claims_settlement.aspxhttp://www.cgtmse.in/circulars.aspxhttp://www.cgtmse.in/chairman_message.aspxhttp://www.cgtmse.in/CEOs_Desk.aspxhttp://www.cgtmse.in/Securitisation.aspxhttp://www.cgtmse.in/FAQs.aspxhttp://www.cgtmse.in/List_Of_MLIs.aspxhttp://www.cgtmse.in/List_Of_MLIs.aspxhttp://www.cgtmse.in/news_and_features.aspxhttp://www.cgtmse.in/Important_links.aspxhttp://www.cgtmse.in/disclaimer.aspxhttp://www.cgtmse.in/sitemap.aspxhttp://www.cgtmse.in/contact_us.aspxhttp://www.cgtmse.in/About_us.aspxhttp://www.cgtmse.in/schemes.aspxhttp://www.cgtmse.in/Eligibility_criteria.aspxhttp://www.cgtmse.in/Fees.aspxhttp://www.cgtmse.in/Claims_settlement.aspxhttp://www.cgtmse.in/circulars.aspxhttp://www.cgtmse.in/chairman_message.aspxhttp://www.cgtmse.in/CEOs_Desk.aspxhttp://www.cgtmse.in/Securitisation.aspxhttp://www.cgtmse.in/FAQs.aspxhttp://www.cgtmse.in/List_Of_MLIs.aspxhttp://www.cgtmse.in/List_Of_MLIs.aspxhttp://www.cgtmse.in/news_and_features.aspxhttp://www.cgtmse.in/Important_links.aspxhttp://www.cgtmse.in/disclaimer.aspxhttp://www.cgtmse.in/sitemap.aspxhttp://www.cgtmse.in/contact_us.aspxhttp://www.cgtmse.in/default.aspx


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hapter Section Title PageNo(s)

I INTRODUCTION

1 Title and date of commencement 1

2 Definitions 1 - 2

II SCOPE AND EXTENT OF THE SCHEME3 Guarantees by the Trust 3

4 Credit facilities eligible under the Scheme 3

5 Credit facilities not eligible under the Scheme 3 - 4

6 Agreement to be executed by the lendinginstitution

4

7 Responsibilities of lending institution underthe Scheme

4 - 5

III GUARANTEE FEE

8 Guarantee Fee and Annual Service Fee 6

IV GUARANTEES

9 Extent of the guarantee 7

V CLAIMS

10 Invocation of guarantee 7 - 8

11 Subrogation of rights and recoveries onaccount of claims paid

8

VI MISCELLANEOUS

12 Appropriation of amount received from thelending institutions

9

13 Appropriation of amount realised by the

lending agency in respect of a credit facilityafter the guarantee has been invoked

9

14 Trust's liability to be terminated in certaincases

9 - 10

15 Returns and Inspections 10

16 Conditions imposed under the Scheme to bebinding on the lending institution

10

17 Modifications and exemptions 10 - 11

18 Interpretation 11

19 Supplementary and general provisions 11

CREDIT GUARANTEE FUND SCHEME FORMICRO AND SMALL ENTERPRISES

CHAPTER I


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INTRODUCTION

he Board of Trustees of Credit Guarantee Fund Trust for Small Industries,aving decided to frame a Scheme for the purpose of providing guarantees

a substantial extent in respect of credit facilities to borrowers in Micro andSmall Enterprises, hereby make the following Scheme:

1. Title and date of commencementThe Scheme shall be known as the Credit Guarantee Fund Scheme for

Small Industries (CGFSI)(ii) It shall come into force from August 1, 2000.

) It shall cover eligible credit facility extended by the lending institutionsto eligible borrowers effective June 1, 2000.

Subsequent to the enactment of MSMED Act-2006 the Trust was renamedas Credit Guarantee Fund Trust for Micro and Small Enterprises and

scheme as Credit Guarantee Scheme for Micro and Small Enterprises.

2. DefinitionsFor the purposes of this Scheme -

(i) "Amount in Default" means the principal and interest amountoutstanding in the account(s) of the borrower in respect of term

loan and amount of outstanding working capital facilities (includinginterest), subject to a maximum of fund based & non-fund based

working capital limits sanctioned and guaranteed as on the date ofthe account becoming NPA, or the date of lodgment of claim

application whichever is lower or such of the date as may bespecified by CGTMSE for preferring any claim against theguarantee cover subject to a maximum of amount Guaranteed.

(ii) "Collateral security" means the security provided in addition to theprimary security, in connection with the credit facility extended by a

lending institution to a borrower.iii) "Credit facility" means any financial assistance by way of term loan

and / or fund based and non-fund based working capital (e.g. Bankarantee, Letter of credit etc) facilities extended by the lending institution tohe eligible borrower. For the purpose of calculation of guarantee fee, the"credit facility extended" shall mean the amount of financial assistanceommitted by the lending institution to the borrower, whether disbursed ornot. For the purpose of the calculation of service fee, the credit facility

extended shall mean the credit facilities (both fund and non-fund based)vered under CGS and for which guarantee fee has been paid, as at March

31, of the relevant year.) "Eligible borrower" means new or existing Micro and Small Enterprises

to which credit facility has been provided by the lending institutionwithout any collateral security and/or third party guarantees.


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(v) 'Guarantee Cover' means maximum cover available per eligibleborrower of the amount in default in respect of the credit facility

extended by the lending institution.vi) "Lending institution(s)" means a commercial bank for the time being

included in the second Schedule to the Reserve Bank of India Act,

1934 and Regional Rural Banks as may be specified by the Trustfrom time to time, or any other institution (s) as may be directed bythe Govt. of India from time to time. The Trust may, on review ofperformance, remove any of the lending institution from the list of

eligible institution.(vii) "Material date" means the date on which the guarantee fee on the

amount covered in respect of eligible borrower becomes payableby the eligible institution to the Trust.

(viii) "Non Performing Assets" means an asset classified as a non-performing based on the instructions and guidelines issued by the

Reserve Bank of India from time to time.

x)

"Primary security" in respect of a credit facility shall mean the assetscreated out of the credit facility so extended and/or which aredirectly associated with the project or business for which the credit

facility has been extended.(x) "Prime Lending Rate" for a lending institution means the rate so

declared by that lending institution for the relevant time period /duration for which the credit facility has been extended.

xi) "Scheme" means the Credit Guarantee Fund Scheme for Micro andSmall Enterprises

(xii) "SIDBI" means the Small Industries Development Bank of India,established under Small Industries Development Bank of India Act,

1989 (39 of 1989).(xiii) 'Micro and Small Enterprises' As per the MSMED Act, 2006 an"enterprise" means an industrial undertaking or a business

concern or any other establishment, by whatever name called,engaged in the manufacture or production of goods, in any

manner, pertaining to any industry specified in the First Scheduleto the Industries (Development and Regulation) Act, 1951 or

engaged in providing or rendering of any service or services; and"Micro and Small Enterprises" are defined in 7.1.a.i) and ii) & in

7.1.b.i) and ii) of the said Act .v) "Tenure of guarantee cover" means the maximum period of guarantee

cover which shall run through the agreed tenure of the term creditand for a period of 5 years or block of a 5 years where working

capital facilities alone are extended, or for such period as may bespecified by the Trust.

xv) "Trust" means the Credit Guarantee Fund Trust for Micro and SmallEnterprises set up by Government of India and SIDBI with thepurpose of guaranteeing credit facility (ies), extended by the

lending institution(s) to the eligible borrowers.


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CHAPTER II

SCOPE AND EXTENT OF THE SCHEME

3. Guarantees by the Trust) Subject to the other provisions of the Scheme, the Trust undertakes,

in relation to credit facilities extended to an eligible borrower fromtime to time by an eligible institution which has entered into the

necessary agreement for this purpose with the Trust, to provide aguarantee on account of the said credit facilities.

(ii.) The Trust reserves the discretion to accept or reject any proposalreferred by the lending institution which otherwise satisfies the

norms of the Scheme.

4. Credit facilities eligible under the Scheme:The Trust shall cover credit facilities (Fund based and/or Non fund

based) extended by Member Lending Institution(s) to a single eligibleborrower in the Micro and Small Enterprises sector for credit facility (i)

not exceeding Rs. 50 lakh (Regional Rural Banks/FinancialInstitutions) and (ii) not exceeding Rs.100 lakh (Scheduled

Commercial Banks and select Financial Institutions) by way of termloan and/or working capital facilities on or after entering into an

agreement with the Trust, without any collateral security and\or thirdparty guarantees.

Provided that the lending institution applies for guarantee cover inrespect of credit proposals sanctioned in the quarter April-June, July-September, October-December and January-March prior to expiry of

the following quarter viz. July-September, October-December,January-March and April-June respectively

Provided further that, as on the material dateThe dues to the lending institution have not become bad or doubtful of

recovery; and / orThe business or activity of the borrower for which the credit facility was

granted has not ceased; and / or) The credit facility has not wholly or partly been utilised for adjustment

of any debts deemed bad or doubtful of recovery, withoutobtaining a prior consent in this regard from the Trust.

5. Credit facilities not eligible under the SchemeThe following credit facilities shall not be eligible for being guaranteed

under the Scheme: -(i) Any credit facility in respect of which risks are additionally covered


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under a scheme operated / administered by Deposit Insuranceand Credit Guarantee Corporation or the Reserve Bank of India,

to the extent they are so covered.) Any credit facility in respect of which risks are additionally covered by

Government or by any general insurer or any other person or

association of persons carrying on the business of insurance,guarantee or indemnity, to the extent they are so covered.(iii) Any credit facility, which does not conform to, or is in any way

inconsistent with, the provisions of any law, or with any directivesor instructions issued by the Central Government or the Reserve

Bank of India, which may, for the time being, be in force.) Any credit facility granted to any borrower, who has availed himself of

any other credit facility covered under this scheme or under theschemes mentioned in clause (i), (ii) and (iii) above, and wherethe lending institution has invoked the guarantee provided by theTrust or under the schemes mentioned in clause (i), (ii) and (iii)

above, but has not repaid any portion of the amount due to theTrust or under the schemes mentioned in clause (i), (ii) and (iii)above, as the case may be, by reason of any default on the part

of the borrower in respect of that credit facility.Any credit facility which has been sanctioned by the lending institution

against collateral security and / or third party guarantee.) Any credit facility which has been sanctioned by the lending institution

with interest rate more than 3% over the Prime Lending Rate(PLR) of the lending institution.

(vii) Credit facilities extended jointly by two or more banks to a singleborrower or credit facilities extended jointly by two or more

institutions to a single borrower, shall not be eligible for guaranteecover. However, CGTMSE shall provide guarantee cover inrespect of the credit facility financed jointly by a bank with SIDBI,

out of the Micro and Small Enterprises (MSE) Fund for NorthEastern Region (NER) created by SIDBI, subject to the following

conditions:

1. The modification of CGS would be applicable to units

covered under SIDBI's "Micro and Small Enterprises Fund

for North East Region (NER)" of Rs. 10 crore under co-

financing arrangement with banks for a maximum term

credit facility of Rs.50 lakh.

2. The co-financed cases shall be lodged for guarantee cover

by the co-financing bank for the entire credit facility

extended by both the co-financing bank and SIDBI.


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3. The co-financing bank shall ensure that all other norms of

CGS have been complied with by SIDBI and the co-

financing bank before lodging the application for guarantee

cover with CGTMSE.

4. The maintenance of guarantee cover i.e, payment of

guarantee fee / service fee / lodgment of claim application,

etc. shall be the responsibility of the co-financing bank.

he eligible claim amount shall be paid to the co-financing bank and it shallbe the responsibility of the co-financing bank to share the claim proceeds

with SIDBI.

6. Agreement to be executed by the lending institutionA lending institution shall not be entitled to a guarantee in respect of any

ligible credit facility granted by it unless it has entered into an agreementith the Trust in such form as may be required by the Trust for covering byay of guarantee, under the Scheme all the eligible credit facilities grantedthe lending institution, for which provision has been made in the Scheme.

7. Responsibilities of lending institution under the scheme:(i) The lending institution shall evaluate credit applications by using

prudent banking judgement and shall use their businessdiscretion / due diligence in selecting commercially viable

proposals and conduct the account(s) of the borrowers with normalbanking prudence.

(ii) The lending institution shall closely monitor the borrower account.iii) The lending institution shall safeguard the primary securities taken

from the borrower in respect of the credit facility in good andenforceable condition.

) The lending institution shall ensure that the guarantee claim in respectof the credit facility and borrower is lodged with the Trust in the

form and in the manner and within such time as may be specifiedby the Trust in this behalf and that there shall not be any delay onits part to notify the default in the borrowers account which shall

result in the Trust facing higher guarantee claims.) The payment of guarantee claim by the Trust to the lending institution

does not in any way take away the responsibility of the lendinginstitution to recover the entire outstanding amount of the creditfrom the borrower. The lending institution shall exercise all the

necessary precautions and maintain its recourse to the borrowerfor entire amount of credit facility owed by it and initiate suchnecessary actions for recovery of the outstanding amount,

including such action as may be advised by the Trust.vi) The lending institution shall comply with such directions as may be


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issued by the Trust, from time to time, for facilitating recoveries inthe guaranteed account, or safeguarding its interest as a

guarantor, as the Trust may deem fit and the lending institutionshall be bound to comply with such directions.

vii) The lending institution shall, in respect of any guaranteed account,

exercise the same diligence in recovering the dues, andsafeguarding the interest of the Trust in all the ways open to it as itmight have exercised in the normal course if no guarantee had

been furnished by the Trust. The lending institution shall, inparticular, refrain from any act of omission or commission, either

before or subsequent to invocation of guarantee, which mayadversely affect the interest of the Trust as the guarantor. In

particular, the lending institution should intimate the Trust whileentering into any compromise or arrangement, which may have

effect of discharge or waiver of personal guarantee(s) or security.The lending institution shall also ensure either through a stipulation

in an agreement with the borrower or otherwise, that it shall notcreate any charge on the security held in the account covered bythe guarantee for the benefit of any account not covered by theguarantee, with itself or in favour of any other creditor(s) without

intimating the Trust. Further the lending institution shall secure forthe Trust or its appointed agency, through a stipulation in anagreement with the borrower or otherwise, the right to list the

defaulted borrowers' names and particulars on the Website of theTrust

CHAPTER III

GUARANTEE FEE

8. Guarantee Fee and Annual Service Fee

) A one time guarantee fee at specified rate ((a)currently 1.00% in thecase of credit facility upto Rs. 5 Lakh and 1.5% in the case ofcredit facility above Rs. 5 Lakh (b) 0.75%, in case of credit

facilities upto Rs.50 lakh sanctioned to units in North EasternRegion including State of Sikkim) of the credit facility sanctioned

(comprising term loan and / or working capital facility) shall be paidupfront to the Trust by the institution availing of the guarantee

within 30 days from the date of first disbursement of credit facilityor 30 days from the date of Demand Advice (CGDAN) of

guarantee fee whichever is later.The annual service fee at specified rate (currently 0.50% in the case of

credit facility upto Rs. 5 Lakh and 0.75% in the case of creditfacility above Rs. 5 Lakh) of the credit facility sanctioned


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(comprising term loan and / or working capital facility) shall be paidby the lending institution within 60 days ie. on or before May 31, ofevery year. In the event of non-payment of annual service fee by

May 31 of that year or any other specified date, the guaranteeunder the scheme shall not be available to the lending institution

unless the Trust agrees for continuance of guarantee and thelending institution pays penal interest on the service fee due andunpaid, with effect from the subsequent June 01, at four per cent

over Bank Rate, per annum, or at such rates specified by the Trustfrom time to time, for the period of delay.

Provided further that in the event of non-payment ofannual service fee within the stipulated time or suchextended time that may be agreed to by the Trust on

such terms, liability of the Trust to guarantee suchcredit facility would lapse in respect of those credit

facility against which the service charges are due and

not paid, Provided further that, the Trust may consider renewal

of guarantee cover for such of the credit facility uponsuch terms and conditions as the Trust may decide.

In the event of any error or discrepancy or shortfallbeing found in the computation of the amounts or inthe calculation of the guarantee fee / annual servicefee, such deficiency / shortfall shall be paid by theeligible lending institution to the Trust together with

interest on such amount at a rate of four per cent overand above the Bank Rate, or as may be prescribed by

the Trust from time to time. Any amount found to havebeen paid in excess would be refunded by the Trust.

In the event of any representation made by the lendinginstitution in this regard, the Trust shall take a decision

based on the available information with it and theclarifications received from the lending institution, andits decision shall be final and binding on the lending

institution.i) The amount equivalent to the guarantee fee and / or the service fee

payable by the eligible lending institution may be recovered by it,at its discretion from the eligible borrower.

The guarantee fee and / or annual service fee once paid by the lendingnstitution to the Trust is non-refundable. Guarantee fee / Annual ServiceFee, shall not be refunded, except under certain circumstances like -

(i) Excess remittance,Remittance made more than once against the same credit application,

(iii) Guarantee fee & / or annual service fee not due,(iv) Guarantee fee paid in advance but application not approved for

guarantee cover under the scheme, etc.


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CHAPTER IVGUARANTEES

9. Extent of the guarantee

The Trust shall provide guarantee as under :

Category Maximum extent of Guarantee where creditfacility is

Upto Rs.5 lakh Above Rs.5lakh upto

Rs.50 lakh

Above Rs.50 lakhupto Rs.100 lakh

Micro Enterprises 85% of theamount in

default subject

to a maximumof Rs.4.25 lakh

75% /Rs.37.50 lakh

Rs.37.50 lakh plus50% of amount in

default above Rs.50

lakh subject to overallceiling of Rs.62.50

lakh

Womenentrepreneurs/Units located in

North East Region(incl. Sikkim) otherthan credit facilityupto Rs.5 lakh tomicro enterprises

80% of the amount in defaultsubject to a maximum of

Rs.40 lakh

Rs.40 lakh plus 50%of amount in defaultabove Rs.50 lakhsubject to overall

ceiling of Rs.65 lakh

All other categoryof borrowers

75% /Rs.37.50 lakh

Rs.37.50 lakh plus50% of amount in

default above Rs.50lakh subject to overall

ceiling of Rs.62.50lakh

All proposals for sanction of guarantee approvals for credit facilities aboves. 50 lakh and upto Rs.100 lakh will have to be rated internally by the MLInd should be of investment grade. Proposals approved by the MLIs on orfter December 8, 2008 will be eligible for the coverage upto Rs.100 lakh.

he guarantee cover will commence from the date of payment of guaranteeee and shall run through the agreed tenure of the term credit in respect ofrm credit / composite credit. Where working capital alone is extended toe eligible borrower, the guarantee cover shall be for a period of 5 years orblock of 5 years, or for such period as may be specified by the trust in this

behalf.


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CHAPTER V

CLAIMS

10. Invocation of guarantee(i)The lending institution may invoke the guarantee in respect of eligible

credit facility if the following conditions are satisfied: -a. The guarantee in respect of that credit facility is in force;

b. The lock-in period of 18 months from either the date of lastdisbursement of the loan to the borrower or the date of

payment of the guarantee fee in respect of credit facility to theborrower, whichever is later, has elapsed;

c. The amount due and payable to the lending institution inrespect of the credit facility has not been paid and the dues

have been classified by the lending institution as NonPerforming Assets. Provided that the lending institution shallnot make or be entitled to make any claim on the Trust in

respect of the said credit facility if the loss in respect of thesaid credit facility had occurred owing to actions / decisionstaken contrary to or in contravention of the guidelines issued

by the Trustd. The credit facility has been recalled and the recovery

proceedings have been initiated under due process of law.Mere issuance of recall notice under SARFAESI Act 2002cannot be construed as initiation of legal proceedings for

purpose of preferment of claim under CGS. MLIs are advisedto take further action as contained in Section 13 (4) of theabove Act wherein a secured creditor can take recourse toany one or more of the recovery measures out of the four

measures indicated therein before submitting claims for firstinstallment of guaranteed amount. In case the MLI is not in aposition to take any of the action indicated in Section 13(4) ofthe aforesaid Act, they may initiate fresh recovery proceeding

under any other applicable law and seek the claim for firstinstallment from the Trust.

(rii) The claim should be preferred by the lending institution in suchmanner and within such time as may be specified by the Trust in

this behalf.(iii) The Trust shall pay 75 per cent of the guaranteed amount on

preferring of eligible claim by the lending institution, within 30 days,subject to the claim being otherwise found in order and complete

in all respects. The Trust shall pay to the lending institution intereston the eligible claim amount at the prevailing Bank Rate for the


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period of delay beyond 30 days. The balance 25 per cent of theguaranteed amount will be paid on conclusion of recovery

proceedings by the lending institution. On a claim being paid, theTrust shall be deemed to have been discharged from all its

liabilities on account of the guarantee in force in respect of the

borrower concerned.) In the event of default the lending institution shall exercise its rights, ifany, to takeover the assets of the borrowers and the amount

realised, if any, from the sale of such assets or otherwise shall firstbe credited in full by the lending institutions to the Trust before it

claims the remaining 25 per cent of the guaranteed amount.v) The lending institution shall be liable to refund the claim released by

the Trust together with penal interest at the rate of 4% above theprevailing Bank Rate, if such a recall is made by the Trust in the

event of serious deficiencies having existed in the matter ofappraisal / renewal / follow-up / conduct of the credit facility or

where lodgement of the claim was more than once or where thereexisted suppression of any material information on part of thelending institutions for the settlement of claims. The lending

institution shall pay such penal interest, when demanded by theTrust, from the date of the initial release of the claim by the Trust

to the date of refund of the claim.The Guarantee Claim received directly from the branches or offices other

than respective operating offices of MLIs will not be entertained.

11. Subrogation of rights and recoveries on account of claims paidThe lending institution shall furnish to the Trust, the details of its efforts

for recovery, realisations and such other information as may bedemanded or required from time to time. The lending institutionwill hold lien on assets created out of the credit facility extended to

the borrower, on its own behalf and on behalf of the Trust. TheTrust shall not exercise any subrogation rights and that the

responsibility of the recovery of dues including takeover of assets,sale of assets, etc., shall rest with the lending institution;

In the event of a borrower owing several distinct and separate debts tothe lending institution and making payments towards any one or

more of the same, whether the account towards which thepayment is made is covered by the guarantee of the Trust or not,such payments shall, for the purpose of this clause, be deemed to

have been appropriated by the lending institution to the debtcovered by the guarantee and in respect of which a claim has

been preferred and paid, irrespective of the manner ofappropriation indicated by such borrower or the manner in which

such payments are actually appropriated.) Every amount recovered and due to be paid to the Trust shall be paid

without delay, and if any amount due to the Trust remains unpaid


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beyond a period of 30 days from the date on which it was firstrecovered, interest shall be payable to the Trust by the lending

institution at the rate which is 4% above Bank Rate for the periodfor which payment remains outstanding after the expiry of the said

period of 30 days.

CHAPTER VI

MISCELLANEOUS

12. Appropriation of amount received from the lending institutions

The amount received from the lending institutions shall be appropriated inhe order in which the service fee, penal interest and other charges haveallen due. If the service fee and the penal interest have fallen due on the

same date, then the appropriation shall be made first towards service feend then towards the penal interest and finally towards any other chargespayable in respect of the eligible credit facility.

3. Appropriation of amount realised by the lending institution in respectof a credit facility after the guarantee has been invoked.

Where subsequent to the Trust having released a sum to the lendingnstitution towards the amount in default in accordance with the provisionsontained in the Section 10 of this scheme, the lending institution recoversoney subsequent to the recovery proceedings initiated by it, the same shall

deposited by the lending institution with the Trust, after adjusting towardsthe cost incurred by it for recovery of the amount. The Trust shallppropriate the same first towards the pending service fee, penal interest,and other charges due to the Trust, if any, in respect of the credit facility

wards which the amount has been recovered by the lending institution, ande balance, if any, shall be appropriated in such a manner so that losses onccount of deficit in recovery of the credit facility between the Trust and theding institution are in the proportion of 75% / 80% / 85% and 25% / 20%

/ 15% , respectively.

14. Trust's liability to be terminated in certain cases

i)If the liabilities of a borrower to the lending institution on account of anyeligible credit facility guaranteed under this Scheme are transferred or

assigned to any other borrower and if the conditions as to theeligibility of the borrower and the amount of the facility and any otherterms and conditions, if any, subject to which the credit facility can beguaranteed under the Scheme are not satisfied after the said transferor assignment, the guarantee in respect of the credit facility shall be


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deemed to be terminated as from the date of the said transfer orassignment.

(ii)If a borrower becomes ineligible for being granted any credit facilitiesunder the Scheme, by reason of cessation of his activity or his activityor his undertaking ceasing to come within the definition of a MSE unit,

the liability of the Trust in respect of any credit facilities granted to himby a lending institution under the Scheme shall be limited to theliability of the borrower to the lending institution as on the date on

which the borrower becomes so ineligible, subject, however, to thelimits on the liability of the Trust fixed under this Scheme. However,

notwithstanding the death or retirement of a partner where theborrower is a partnership firm or the death of one of the joint

borrowers, if the lending institution is entitled to continue the creditfacilities to the surviving partner or partners or the surviving borroweror borrowers, as the case may be and if the credit facilities have notalready become non performing asset, the guarantee in respect of

such credit facilities shall not to be deemed to be terminated asprovided in this paragraph.

15. Returns and Inspections

(i)The lending institution shall submit such statements and furnish suchinformation as the Trust may require in connection with any credit

facility under this Scheme.)The lending institution shall also furnish to the Trust all such documents,

receipts, certificates and other writings as the latter may require andshall be deemed to have affirmed that the contents of such

documents, receipts, certificates and other writings are true, providedthat no claim shall be rejected and no liability shall attach to thelending institution or any officer thereof for anything done in good

faith.iii)The Trust shall, insofar as it may be necessary for the purposes of the

Scheme, have the right to inspect or call for copies of the books ofaccount and other records (including any book of instructions or

manual or circulars covering general instructions regarding conduct ofadvances) of the lending institution, and of any borrower from the

lending institution. Such inspection may be carried out either throughthe officers of the Trust or of SIDBI (except in case of Institutions

other than SIDBI) or any other person appointed by the Trust for thepurpose of inspection. Every officer or other employee of the lendinginstitution or the borrower, who is in a position to do so, shall make

available to the officers of the Trust or SIDBI or the person appointedfor the inspection as the case may be, the books of account and other

records and information which are in his possession.

6. Conditions imposed under the Scheme to be binding on the lending


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institution

)Any guarantee given by the Trust shall be governed by the provisions ofthe Scheme as if the same had been written in the documents

evidencing such guarantee.

The lending institution shall as far as possible ensure that the conditions ofany contract relating to an account guaranteed under the Scheme arenot in conflict with the provisions of the Scheme but notwithstanding

any provision in any other document or contract, the lending institutionshall in relation to the Trust be bound by the conditions imposed

under the Scheme.

17. Modifications and exemptions

(i)The Trust reserves to itself the right to modify, cancel or replace thescheme so, however, that the rights or obligations arising out of, or

accruing under a guarantee issued under the Scheme up to the dateon which such modification, cancellation or replacement comes intoeffect, shall not be affected.

)Notwithstanding anything herein contained, the Trust shall have a right toalter the terms and conditions of the Scheme in regard to an accountin respect of which guarantee has not been invoked as on the date of

such alteration.)In the event of the Scheme being cancelled, no claim shall lie against the

Trust in respect of facilities covered by the Scheme, unless theprovisions contained in Clause (i) and (ii) of Section 10 of the Schemeare complied with by the lending institution prior to the date on which

the cancellation comes into force.

18. Interpretation

any question arises in regard to the interpretation of any of the provisionsof the Scheme or of any directions or instructions or clarifications given in

connection therewith, the decision of the Trust shall be final.

19. Supplementary and general provisions

In respect of any matter not specifically provided for in this Scheme, therust may make such supplementary or additional provisions or issue suchinstructions or clarifications as may be necessary for the purpose of the

Scheme.

*****


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Other Schemes

Credit Guarantee Fund Scheme for Micro and Small Enterprises(CGS)Risk Sharing Facility (RSF): Scheme has ended on Dec 31 2008

Copyright 2008 CGTMSE. Powered by GeoTel

General Refinance Scheme (GRS)

Purpose For setting up new small scale units or expansion, modernisation,

diversification etc. of existing units and for all activities eligible for assistance

under the scheme including professional practice/consultancy venture andservice sector units such as tourism related activities / hospitals / nursing

homes / polyclinics / hotels / restaurants / marketing and industrial

infrastructural projects.

Eligible

Borrowers

All forms of organisations in the small scale sector (i.e.,proprietary,partnership, company, co-operative society) etc.

For infrastructure development - All forms of organisations such as public/pvt ltd. cos., partnerships, sole proprietary, municipalities, SIDCs.

Norms Scheme operated through SFCs/SIDCs/banks.

Cost of project in respect of service sector units not to exceed Rs.200 million

for banks and as prescribed by IDBI/SIDBI for SFCs/SIDCs.

Refinance Scheme For Textile Industry Under Technology Upgradation Fund (RTUF)

Objective To provide encouragement to textile industrial units (including units in the CottonGinning and Pressing sectors) in the small scale sector for taking up technology

upgradation and to modernise their production facilities. The scheme envisages

interest incentive of 5 percentage points on the loans availed by small scale units

from eligible Primary Lending Institutions (PLIs) for undertaking technologyupgradation / modernisation. New units being set up with technology as per the

guidelines of the scheme would also be eligible for the above incentive.

However, availment of Refinance from SIDBI is not compulsory in respect of SFCs,

Scheduled Commercial Banks and select co-opted Co-operative Banks. In case

Refinance is availed from SIDBI, such proposals shall conform to norms and
http://www.cgtmse.in/schemes.aspx?artid=51http://www.cgtmse.in/schemes.aspx?artid=51http://www.cgtmse.in/schemes.aspx?artid=113http://www.sidbi.com/prilendinstitutions.asphttp://www.cgtmse.in/schemes.aspx?artid=51http://www.cgtmse.in/schemes.aspx?artid=51http://www.cgtmse.in/schemes.aspx?artid=113http://www.sidbi.com/prilendinstitutions.asp


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parameters stipulated by SIDBI in addition to the guidelines prescribed by GoI.

Purpose Assistance under the scheme would be available for installation of specified types of

machinery (to fall in line with definition laid down by Government of India (GOI)for technology upgradation) in a new unit or in an existing unit by way of

replacement of existing machinery and / or expansion will be eligible for coverage

under RTUF scheme (details of list of machinery are furnished in Section 4 ofTechnology Upgradation Fund Scheme booklet issued by GOI)

i] The following investments will also be eligible to the extent necessary for the

plant and equipment to be installed for Technology Upgradation and the total of such

investments will not normally exceed 25% of the total investment in such plant andmachinery: a) Land and factory building including renovation of factory

building and electrical installations.

b) Energy saving devices

c) Effluent treatment plant (ETP)

d) Water treatment plant for captive industrial use

e) Captive power generation

Fixed Deposit Scheme

Interest Rates

The Interest Rate Structure for SIDBI Fixed Deposit Scheme of SIDBI are as under:

Duration (Years)Revised Annual Interest Rate %p.a. w.e.f September 1,

2010

Interest (% p.a.) Annualised Yield

(% p.a.) QuarterlyCompounding)

12 months - 13 months 7.00 7.19

14 months - 36 months 7.25 7.45

37 months - 60 months 7.50 7.71

For Senior Citizens *

Interest (% p.a.) Annualised Yield

(% p.a.) QuarterlyCompounding)

12 months - 13 months 7.50 7.71

14 months - 36 months 7.75 7.9837 months - 60 months 8.00 8.24

Minimum amount of Deposit - Rs.10,000 and in multiples of Rs.1,000 thereafter.* In case of applications from senior citizens (age 60 years and above), applicantsare requested to furnish the proof of age viz. an attested copy of any one of the

following: Ration card, Passport, Driving License, Voter Identification card, PAN card,Pension/Service Book, Birth Certificate, School Leaving Certificate, LIC Policy etc.


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indicating the date of birth, or depositor's status as Senior Citizen. All eligibleDepositors will have to comply with the KYC norms.

Direct Credit Schemes

SSIs

Service sector units with

project cost upto Rs.25

crore

Medium Sector Enterprises

(MSE) and

Service sector units with

project cost above Rs.25

crore and upto Rs.250

crore.

Eligibile

Borrowers

I] New or existing SSI units.

ii] SSI unit graduating to medium

scale, andiii] Service sector units with an

overall project cost not exceeding

Rs.25 crore.

i] New or existing medium sector

enterprises, and

ii] Service sector units with anoverall project cost above Rs.25

crore and upto Rs.250 crore with

Bank's assistance not exceeding Rs.50 crore.

Constitution The unit should generally be a

private limited / public limited

company. However, partnership

firms, sole proprietorship concernsand Societies and Trusts would also

be considered on a case to case basis.

The unit should generally be a

private limited / public limited

company

Nature of

assistance

Term loan and other forms ofassistance such as Working Capital

Term Loan and bills discounting (onselective basis).

Term loan and other forms ofassistance such as Working Capital

Term Loan, suppliers' & purchasers'bills discounting. Investment

products such as debentures,optionally convertible cumulative

preference shares, zero coupon

bonds, etc.

Currency of loan In Rupee or foreign currency In Rupee or foreign currency

Composite Loan Scheme (CLS)

Purpose Assistance for equipment and/or working capital as also for work Sheds

Eligible Borrowers Artisans, village and cottage industries and small industries in tiny

sector

Norms Loan Limit - Not to exceed Rs.2.5 million


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Mission

To empower the Micro, Small and Medium Enterprises (MSME) sector with a view tocontributing to the process of economic growth, employment generation and balanced

regional development

Vision

To emerge as a single window for meeting the financial and developmental needs of the

MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand

as the preferred and customer - friendly institution and for enhancement of share - holder

wealth and highest corporate values through modern technology platform

Call Toll Free No.1800 22 6753

Marketing Fund for Women (MFW)

Objective

The assistance under the Fund is available to women entrepreneurs and organisations involved in

marketing of products manufactured by women entrepreneurs to increase their reach, both indomestic and international markets.

Eligible Borrowers

SSI units managed by women entrepreneurs.

Marketing related service providers Organisations / units in the corporate / co-operative /

NGO sectors which are providing support services like internet, trade related information,advertising, marketing research, warehousing, common testing centres, etc. to enterprises

owned and managed by women.

Marketing related service providers Organisations / units in the corporate / co-operative /NGO sectors which are providing support services like internet, trade related information,

advertising, marketing research, warehousing, common testing centres, etc. to enterprises

owned and managed by women.

Consortia

Organisations / Associations / Women Groups / Marketing Consortia that have an exclusivemarketing mandate and have, as their vendor base, a wide range of small and tiny units owned

and managed by women entrepreneurs.
http://www.sidbi.in/hindi/index.asp


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While the terms and conditions for sanction of assistance would be flexible, they would

essentially depend upon the soundness of the management, track record of performance

and viability of future operations.

Development Assistance

Besides providing financial assistance as mentioned above, SIDBI could also consider, on aselective basis, developmental assistance by way of soft loans/grants for organising group

activities and programmes such as trade fairs, exhibitions, buyer-seller meets, seminars,

workshops, training programmes, etc. to promote marketing of products manufactured by womenentrepreneurs.

Direct Finance Schemes Objective

SIDBI had been providing refinance to State Level Finance Corporations / State

Industrial Development Corporations / Banks etc., against their loans granted to

small scale units.

Since the formation of SIDBI in April, 1990 a need was felt/ representations were

made that SIDBI being the principal financial institution for the small sector, should

take up the financing of SSI projects directly on a selective basis.

So it was decided to introduce direct assistance schemes to supplement the other

available channels of credit flow to the small industries sector. Since then, SIDBI has

evolved itself into a supplier of a range of products and services to the Small &

Medium Enterprises [SME] sector.

Post-Shipment Credit in Foreign Currency (EBF) / Rupee (PSCR)

Purpose

To provide post-shipment credit in foreign currency at internationallycompetitive rates of interest by discounting of usance export bills / purchase

of sight/demand export bills and negotiation of bills under LCs.


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Eligibile

Borrowers

All SME units and Export / Trading houses sourcing their requirements

from SMEs with

a. profit making units with proven track record in exports for last threeyears and sound financial position

b. requirement of export finance assistance of at least Rs.100 lakh

Norms

Need based limit, depending on the normal trade terms and credit period

given to overseas buyers by exporters not exceeding 180 days. Assistance

in rupees is also considered independent of FC limits.

Rate of interest-

For EBF - Not exceeding 0.75% over 6 Month LIBOR.

For PSCR - As per RBI guidelines and the score chart introduced by SIDBI.

Pre-Shipment Credit in Foreign Currency (PCFC) / Rupee (PCR)

Purpose

To enable small scale industries to raise finance at internationally

competitive rates as per Reserve Bank of India guidelines to fulfil their

export commitments.

EligibileBorrowers

Industrial concerns in the small scale sector and Government recognisedExport / Trading Houses sourcing their requirement for export from SME

sector with

a. profit making units with proven track record in exports for last three

years and sound financial position

b. requirement of export finance assistance of at least Rs.100 lakh

Norms Pre-shipment Credit in Foreign Currency (PCFC) is being extended in USD

& EURO Currencies. Assistance in Rupees is also considered independent

of FC limits.

Quantum - need based linked to working capital gap.

Period of Credit - linked to production cycle (Maximum - 180 days)

Margin - minimum 10% and maximum 25%

Repayment - by discounting / negotiation of Export bills within a maximum

period of 180 days

Rate of interest -


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For PCFC - Not exceeding 0.75% over 6 Month LIBOR.

For PCR - As per RBI guidelines and the score chart introduced by SIDBI.

Foreign Currency Term Loan Scheme (FCTL)

FCTL will be extended in USD & Euro currencies.

For acquisition of fixed Assets

Purpose

For setting up new projects as well as for expansion, diversification,

technology upgradation and modernisation of existing units with good track

record covering both indigenous and imported. The units should preferablybe export-oriented.

Eligible

Borrowers

Industrial concerns in the SME sectors.

NormsRepayment - maximum 5 years with a moratorium of 1 year, linked to the

cash flow of the unit.

For Working capital purposes

Purpose For meeting working capital requirements, both indigenous and imported.

Eligible

Borrowers

SME units and Export / Trading Houses sourcing their requirements for

export from SME sector and having consistent export performance.

Norms Repayment - maximum 5 years.

SIDBI Foundation

for

Micro Credit

SIDBI Tower

15, Ashok Marg

Lucknow - 226001

Phone No:- +91 - 522 - 2288547 / 48 / 49 / 50

E-mail: [email protected]/GSC/TUFS

Govt subsdaries

November 27, 2007


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All the Co-opted Primary Lending Institutions

GSC Circular No. 06 / 2007-2008

Dear Sir/ Madam,

Technology Upgradation Fund Scheme (TUFS)- Revised mechanism for

release of subsidy to the primary Nodal Agencies / Nodal Banks under

TUFS

The Office of the Textile Commissioner, Ministry of Textile vide their Circular No.3

dated December 5, 2006 had circulated the revised mechanism for release of

subsidy to the PLIs and Nodal Banks (Annexure I) .

2. In order to avoid duplication, it has now been decided that henceforth, the

primary lending institutions (PLIs) of SIDBI are required to furnish information

to SIDBI in reporting formats T-1 and T-2 only (Annexure II) after entering

requisite information in the OTxC website directly. PLIs will also be required

to furnish the following certificate (on letterhead of the PLI) while forwarding

the reporting formats T-1 and T-2, for seeking eligibility clearance of a

proposal under TUFS :

"(Name of PLI) have exercised due diligence in furnishing

information in the enclosed reporting formats T-1 and T-2 for

seeking eligibility clearance vide letter No._________________

dated __________ for the loan of Rs.___________________________

sanctioned to (Name of the company) and certify that the

statements made therein are correct. SIDBI as Nodal Agency

would establish eligibility of the project under the Scheme on

the basis of the information furnished in reporting formats T-1

and T-2 and the (Name of PLI) shall own the responsibility for


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the omissions/misrepresentations, if any, in the reporting

formats.

Place : (Signature)

Date : (Name & Designation of the

authorised signatory)

(Please affix Seal/Rubber stamp of FI/Bank)".

3. The above procedure for examination of eligibility of proposals by SIDBI, the

Nodal Agency, under TUFS (MSME sector), comes into practice with

immediate effect and SIDBI shall not take cognizance of sanction / appraisal

note and sanction communication received, if any, from PLIs with immediate

effect.

4. The PLIs may identify their Nodal Branch which would deal with the

matter for their respective institution and intimate the name and

address / e.mail address/telephone number of the Branch and the

Officers handling the desk. This would make it convenient for the

PLI as well as SIDBI to communicate / interact in the matter. It has

been decided to centralise the scheme at SIDBI, HO level and

therefore SIDBI will not entertain any applications received from the

PLI branches other than from the notified Nodal Branch of the PLI.

5. Henceforth, claims in with T-1, T-2 formats etc. should be submitted to SIDBI,HO at the following address :

General Manager

Government Scheme Cell


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SIDBI Tower

15, Ashok Marg,

Lucknow - 226001

Tel. No - 0522- 2288546- 550

Fax No - 0522 - 2288457

e.mail : [email protected]

[email protected]

The Government of India (GoI), Ministry of Textiles (MoT), Office of the Textile

Commissioner (O/o The Txc), has directed as follows :

a. PLI shall maintain a separate account to deposit subsidy-funds released

under TUFS.

b. Interest, that may accrue on funds may be credited to the said dedicated

account and deposited every quarter with the Pay and & Accounts Office,

MoT, Udyog Bhavan, New Delhi, by way of a demand draft drawn in favour

of Pay and Accounts Officer, Ministry of Textiles.

c. Funds will be utilised for interest reimbursement and Credit Linked Capital

Subsidy (CLCS) under TUFS as per norms approved by GoI. PLIs shall not

divert funds for any other purpose nor entrust execution of the Scheme or

work concerned to other institutions / organisations and shall abide by

terms and conditions of release of funds. If PLIs fail to utilise funds for the

purpose for which the same have been sanctioned, PLIs will be required to

refund the amount of funds with interest thereon @ 10% per anum.

d. Funds so released to PLIs shall be open to inspection by GoI (MoT) /

Internal Audit Party of the Chief Controller of Accounts, Ministry of

Commerce and Textiles, New Delhi.

e. The PLIs will have to submit Auditors Certificate in the prescribed format

(Annexure III) after the end of the Financial Year.

f. PLIs shall maintain a register containing details of beneficiaries to whom

interest reimbursement / CLCS is released under TUFS.


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g. PLIs shall furnish release wise Utilisation Certificate in the GFR 19-A

format (Annexure IV) to the GoI, MoT, O/o the TxC [New CGO Building,

48, New Marine Lines, Mumbai - 400020] duly signed by authorised

signatory at the end of each FY or while making fresh request for subsidy

-funds, whichever is earlier. The request for next release shall be

considered only when there is nil or negligible unutilised balance with the

PLI.

6. PLIs may accordingly furnish utilisation certificate alongwith break-up of the

subsidy released account-wise (Annexure V) to O/o the TxC and a copy to

Government Scheme Cell, SIDBI, 15, Ashok Marg Lucknow, 226001, in

respect of the subsidy funds released by SIDBI.

PLIs are requested to adhere to the above procedures and requirements with

immediate effect.

Yours faithfully,

(Sd/-)

[Jyothi Raman]

Deputy General Manager

Endt. No. 7226(A) /GSC TUFS

Copy forwarded for information to Smt Shashi Singh, Joint Textile Commissioner,

Government of India, Ministry of Textiles, Office of the Textile Commissioner, New

CGO Building, 48, New Marine Lines, Mumbai - 400020.

(Sd/-)

Asst. General Manager

Promotional and Development Activities Objective


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As an apex financial institution for promotion, financing and development of industry in the

small scale sector, SIDBI meets the varied developmental needs of the Indian SSI sector by itswide-ranging Promotional and Developmental (P&D) activities.

P&D initiatives of the Bank aim at improving the inherent strength of small scale sector on onehand as also economic development of poor through promotion of micro-enterprises.

In pursuance of its multifaceted P&D activity, synergistic with its business activities aimed atdevelopment of the small industries, SIDBI looks forward to a partnership with NGOs, associate

financial institutions, corporate bodies, R&D laboratories, marketing agencies, etc., for national

level programmes.

SIDBI has identified the following thrust areas of P&D activities, which are being undertaken in

partnership with various institutions, agencies, and NGOs:

Rural Industries Programme (RIP)

Introduction

A unique approach for rural industrialisation where the emphasis is on stimulating and helping

the potential entrepreneurs to set up small enterprises through consultancy outfit positioned by

SIDBI.

Objective

Development of viable and self-sustaining tiny / small enterprises in rural and semi urban India

by harnessing local entrepreneurial talent. The Programme attempts to address the problems such

as rural unemployment, urban migration and under-utilisation of local skills and resources, and isdesigned as a comprehensive Business Development Services programme.

The Rural Industries Programme (RIP) of the Bank provides a cohesive and integrated package

of basic inputs like information, motivation, training and credit, backed by appropriate

technology and market linkages for the purpose of enterprise promotion.

Approach


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Development of underdeveloped areas :

Under RIP, an economically underdeveloped district is identified and an Implementing Agency

(IA) Development professionals, Technical consultancy organisaion or Non- Governmentorganisation is positioned to provide a comprehensive and integrated package of inputs and

business development services to potential entrepreneurs. The identified IA positions a team ofprofessionals at the field level for a period of five year. IA also provides support during post

implementation period to ensure sustainability of enterprises.

Integrated approach : The package of services provided by IA, inter alia, includes identifying and

motivating rural entrepreneurs, identification of viable ventures based on local skills and

resources, training, appropriate technology linkages and finance tie-up with the formal banking

sector.

Enterpreneurship Development Programme (EDP)

Introduction

Entrepreneurship can be developed by training. Towards this end and also to make the

Entrepreneurship Development Programmes (EDPs) result-oriented, SIDBI has been supportingsuitable agencies to train and guide potential entrepreneurs to set up enterprises.

Objective

EDPs aim at training various target groups in entrepreneurial traits so that they obtain adequate

information, motivation and guidance in setting up their own enterprises. In order to maintain a

homogeneous nature of participating groups, EDPs focus on rural entrepreneurs, women, SC/ST,etc.

Programme Particulars

The EDPs are normally of 4 - 6 weeks duration coupled with proper practical training inputs.Training Agencies specialising in conducting EDPs, Non-Governmental Organisations (NGOs)and specialised technical institutes are extended assistance to conduct product specific EDPs.

In an effort to attract more professional and result oriented institutions into the EDP fold, theBank has made the scheme more performance oriented by extending reasonable support towards

training cost and encouraging the institutions to earn performance fee by grounding units.


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Progress

Upto March 2001, the Bank has supported a total of 1317 EDPs benefiting approximately 27,500persons.

Management Development Programmes

Introduction

Management Development in SSIs has been identified as a crucial area of intervention for the

viability, competitiveness and profitability of SSI units especially in the context of present

economic transition when the market barriers are gradually being removed. SIDBI took initiativeto remedy the short-coming of HRD in SSI sector by launching two programmes namely SmallIndustries Management Programme (SIMAP) targeted at qualified unemployed as well as

industry sponsored candidates to provide low cost and competent managers to SSI units and

Skill-cum-Technology Upgradation Programme(STUP) for owners/managers of SSIs.

SMALL INDUSTRIES MANAGEMENT PROGRAMME Objective

The objective of SIMAP is to develop a cadre of industrial managers specifically trained to assist

the SSI entrepreneurs in their multiple responsibilities. It also seeks to open up new avenues of

productive employment for young graduates who are otherwise not professionally qualified.

Participants

This programme is targeted at unemployed non-technical graduates, diploma holders andindustry sponsored participants for management strengthening.

Duration & Contents

The programme is conducted in three phases, normally over a period of 14-18 weeks. The first

phase consists of classroom sessions for about 5-8 weeks. Inputs essentially cover information,

knowledge and skills pertaining to management of the SSI units. This is followed by the second

phase of 8 weeks wherein on-the-job practical training is provided in the SSI units. The finalphase of 1-2 weeks is basically a refresher / debriefing course before the candidates are awarded

their course certificates.

Technology Upgradation Programmes Introduction

The competitiveness of the products of SSI units both in the domestic and international markets

is dependent to a large extent on their productivity levels, price factors and quality

charachetristics. SIDBI's technology upgardation and modernisation programme is aimed atimproving the technical capabilities and competitiveness of SSI units in clusters by introducing

commercial proven technologies which will result in significant improvement in quality,

productivity, bring about cost reduction, saving of energy and raw materials and reduction in the

level of pollution.


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Objective

SIDBI's efforts broadly aim at:

Creation of awareness on new product / process technologies Skill upgradation

Development of technology related common facilities for the cluster

Provision of unit-specific modernisation package

Energy conservation and introduction of environment friendly technologies

Quality upgradation in terms of systems and products

Approach

The first step involves the selection of clusters, which have certain homogeneity in terms of

status of technology, products, production levels, trade practices, and capacity to absorbimproved technology. Individual clusters are then assigned to expert consultancy agencies that

assess the technology upgradation needs and prepare unit-specific modernisation packagesincluding scope for consolidation of technical capabilities of existing units.

The implementing agencies are suitably compensated by way of professional fee for undertakingthe assignment.

Selection of Managing Director for

APITCO Ltd., Hyderabad, Andhra

Pradesh

Selection of Managing Director forWest Bengal Consultancy

Organisation Ltd., Kolkata, West

Bengal

Fixed Deposit Scheme
http://www.sidbi.in/notices/APITCO.dochttp://www.sidbi.in/notices/APITCO.dochttp://www.sidbi.in/notices/APITCO.dochttp://www.sidbi.in/notices/WEBCON.dochttp://www.sidbi.in/notices/WEBCON.dochttp://www.sidbi.in/notices/WEBCON.dochttp://www.sidbi.in/notices/WEBCON.dochttp://www.sidbi.in/ntree.asphttp://www.sidbi.in/notices/APITCO.dochttp://www.sidbi.in/notices/APITCO.dochttp://www.sidbi.in/notices/APITCO.dochttp://www.sidbi.in/notices/WEBCON.dochttp://www.sidbi.in/notices/WEBCON.dochttp://www.sidbi.in/notices/WEBCON.doc


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Interest Rates

The Interest Rate Structure for SIDBI Fixed Deposit Scheme of SIDBI are as under:

Duration (Years)Revised Annual Interest Rate %p.a. w.e.f September 1,

2010

Interest (% p.a.) Annualised Yield(% p.a.) Quarterly

Compounding)

12 months - 13 months 7.00 7.19

14 months - 36 months 7.25 7.45

37 months - 60 months 7.50 7.71

For Senior Citizens *

Interest (% p.a.) Annualised Yield(% p.a.) Quarterly

Compounding)

12 months - 13 months 7.50 7.7114 months - 36 months 7.75 7.98

37 months - 60 months 8.00 8.24

Minimum amount of Deposit - Rs.10,000 and in multiples of Rs.1,000 thereafter.* In case of applications from senior citizens (age 60 years and above), applicantsare requested to furnish the proof of age viz. an attested copy of any one of the

following: Ration card, Passport, Driving License, Voter Identification card, PAN card,Pension/Service Book, Birth Certificate, School Leaving Certificate, LIC Policy etc.

indicating the date of birth, or depositor's status as Senior Citizen. All eligibleDepositors will have to comply with the KYC norms.

Mumbai Office

SME Development Centre,

2nd Floor,Plot No.C-11, 'G' Block,

Bandra Kurla Complex Bandra (East),

Mumbai - 400 051

Tel.: +91 - 22 - 67531100, Banks Cut SME Lending Rates

Submitted by Harish Dhawan on Fri, 12/19/2008 - 12:06.

India Business

Banking Sector

Featured

TNM

State Bank of India and Small Industries Development

Bank of India (Sidbi) announced a cut in interest rates for the new loans to

micro, small and medium enterprises by up to one per cent. Interest rate
http://www.topnews.in/user/harish-dhawanhttp://www.topnews.in/business-news/india-businesshttp://www.topnews.in/business-news/banking-sectorhttp://www.topnews.in/general/featuredhttp://www.topnews.in/general/tnmhttp://www.topnews.in/user/harish-dhawanhttp://www.topnews.in/business-news/india-businesshttp://www.topnews.in/business-news/banking-sectorhttp://www.topnews.in/general/featuredhttp://www.topnews.in/general/tnm


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reduction came after the announcement of a special package by the RBI and Association of

Bankers. The new rates would be effective immediately. Small scale industry had been

demanding financial package from the government to push demand in the sector which isadversely impacted by the ongoing financial crisis.

Now, small firms with working capital limits of up to Rs 10 crore can avail benefit of interestrate reduction from these banks. SBI said in a press release, "With this reduction, the micro

enterprises will be able to avail working capital finance at as low as 10.25 per cent."

Small Industries Development Bank of India cut the benchmark prime lending rates by 150 basis

points to 12.5 percent in lines with RBI's move to provide financial relief to the small scale

industry. The bank would provide funds at sub-PLR rates. Chairman and Managing Director of

SIDBI, RM Malla said, "Thanks to the help from the government and RBI, our cost of funds willcome down and we will pass on the benefits to the borrowers."

Allahabad Bank has also revised its interest rates for all existing and new loans to micro

industries. Small and medium enterprises with capital exposure of up to Rs 10 crore can avail 50point cut in interest rates.


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export credit guarantee corporation of india ltd doc1

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