1. The Scheme
The Corporation considers financial assistance for purchase of Land, construction of building, purchase of machinery & equipments and for working capital under Single Window Scheme. Single Window scheme is considered as composite assistance in term loan for fixed assets and working capital assistance for SSI units. Working capital assistance alone is also considered under Single Window Scheme for the units earlier assisted by us on or after 1.1.92 and which are not in a position to tie up with Banks for their working capital requirement.

2. Eligibility
The SSI units with venture outlay i.e. aggregate cost of the project (excluding working capital margin) and total working capital requirement shall be upto Rs.200.00 lakhs, where refinance is available from SIDBI.

Separate Working capital term loan under the scheme to those units which were sanctioned term loan for acquiring fixed assets on or after 1.1.92.
If the units have bank facility, there are not eligible for working capital assistance under Single Window Scheme. In case of additional requirement / enhancement, they shall approach their banker.

If any assisted units who have totally repaid our term loan / assisted units who are having a very nominal loan outstanding (as at the fag end of repayment period) are also eligible for working capital loan under Single Window Scheme.

Modernisation and Technology upgradation of existing well-run units would be eligible for coverage under Single Window Scheme provided aggregate of the venture outlay of the original project (existing fixed assets plus working capital) and the cost of modernisation and technology upgradation, together with the additional working capital requirement does not exceed Rs.200.00 lakhs.

4. Debt Equity Ratio
The Debt Equity Ratio shall be 3 : 1 for loans upto Rs.10 lakhs (including working capital loan). The Debt Equity Ratio shall be 2 : 1 for loans above Rs.10 lakhs.

7. Holiday period
For term loan, holiday period will be between 6 months and 2 years. For working capital component holiday period shall be six months to one year. For WCTL alone there is no holiday period.

8. Repayment
Repayment of working capital loan is for a period of 5 years. Repayment of term loan under Single Window Scheme is 5 to 7 years

9. Working capital assessment
Working capital required for the project will be arrived at based on 25% of the projected annual turnover in the first year of operation. On this working capital credit can be considered to the extent of 70% and the balance 30% has to be brought in by the promoters as the margin.

10. Release of Funds
The working capital will be released to the banks in stages where the party is maintaining current account based on funds requirement for the unit as soon as the project is ready for trial production and on receipt of power connection from TNEB. Working capital loan may also be released directly to the suppliers of raw materials / components after obtaining necessary quotations. Payments against finished goods and bills shall be made only after physical verification of stock and records of outstanding bills

12.Collateral Security
The unit shall offer collateral security to cover 100% of working capital term loan component and to cover 50% of term loan component under Single Window Scheme.