1. The Scheme

The scheme aims at financing the SSI units with whom purchase orders have been issued by TNEB/ TWAD for the supply of ACSR conductors / AAAC conductors / distribution transformers / power transformers / cables against supply bills to TNEB/TWAD.

2. Eligibility

SSI units to whom TNEB has issued orders for the supply of ACSR conductors / AAAC conductors / distribution transformers / power transformers / cables only.

3. Purpose of financing

For the supply of ACSR conductors / AAAC conductors / distribution transformers / power transformers / cables against supply bills to TNEB as per TNEB purchase order.

4. Level of Assistance

Sanction Limit

The quantum / limit of assistance will be 50% of the value of the order given by TNEB.

Drawal Limit

90% of the net amount of the invoice value i.e. after deducting the percentage of retention amount stipulated by TNEB.

5. Processing fee (non-refundable)
1% of the limit applied for or 50% of the value of the order given by TNEB whichever is lower shall be collected at the time of the receipt of the application.


6. Renewal Fees

0.25% of the limit sanctioned shall be collected for renewal of the limit.

7. Penal Interest

2.5% of the limit for the defaulted amount for the defaulted period.

8. Credit Period

The maximum credit period of each will be 120 days.

9. Security

The loan will be secured by Post Dated Cheques given by the unit. The amount of the post dated cheques will be the bill amount disbursed for each Bill together with interest from the date of disbursement to the date of post dated cheques i.e., 120 days from the date of disbursement.
The loan will be secured by the personal guarantee of Proprietor / Partners / Directors of the applicant unit.

10. Validity of Sanction

The sanction will be valid for a period of one year from the date of sanction and it will be renewed every year on production of TNEB purchase order for the next year.