1.
The Scheme: The scheme is introduced
by SIDBI to encourage existing Industrial
units in the Small Scale sector to modernise
their production facilities and to adopt
improved and updated technology.
2. Eligibility:
Small Scale Industrial Units including ancillary
units which go in for modernisation / technology
upgradation; the outlay on land and building
should not exceed 25% of the outlay on modernisation
/ technology upgradation programme.The units
should be in operation atleast for a period
of 3 years.All SSI / Ancillary units (including
those graduating out of SSI sector) either
exporting or non exporting would be eligible
for assistance.Units which are not in default
to institutions or banks only will be eligible.
Units satisfying all the above requirements
shall be considered for assistance
3. Purpose of Assistance: Assistance
under the scheme would be for
Purchase of capital
equipment, need based civil works and
acquisition of technical know-how, designs,
drawings etc.
Upgradation
of process technology and products with
thrust on quality improvement comparable
with acceptable domestic and international
standards.
Improvement
in packaging.
Cost of TQM and acquisition of ISO 9000
series certification.Need based additional
/ incremental margin money for working
capital.Preliminary and pre-operative
expenses shall not be covered as a part
of cost of project.
4. Project Cost:
The project
outlay should not exceed Rs.100.00 lakhs.
5. Promoter
Contribution:
The minimum promoters contribution would
be 20% of cost of project
6. Rate of
interest: The
rate of interest will be the prevailing
rates.
7.
Repayment period:
Not exceeding five years including moratorium
upto six months.
8. Collateral
Security:
Separate collateral security is not required
for purchase of capital euipments, need
based civil works and acquisition of additional
land. The existing primary / collateral
shall be extended for this scheme. If intangible
assets such as acquisition of technical
know-how, cost of TQM and acquisition of
ISO 9000 are availed under this scheme.
Additional collateral security say atleast
50% of loan amount shall be offered.
9. Others:
Proposals sanctioned under RTDM shall also
be eligible for 12% capital subsidy under
CLCSS subject to satisfaction of norms.
