Assistance under the scheme will be for purchase and erection of identifiable items of plant and machinery including generators for modernization / expansion / balancing / replacement. Machinery imported directly will also be eligible. Transport and erection charges, additional need based civil work, miscellaneous fixed assets and electrical related to the equipment may also be considered in the project cost.

Finance can also be extended for purchase of Second hand machinery, both indigenous and imported machinery. The Second hand imported machinery specifies the Second hand machinery purchased from local dealers & from the units already using them locally.

• The Unit should be in operation for 3 completed financial years.
• The Unit should have earned net Profit for last 3 years without any accumulated losses.
• Green field units which purchase second hand machinery may be financed with prior approval of Head Office.

Quantum of Loan

Category A: For the promoters having CIBIL>650 & CMR≤5

Minimum Rs.10 lakhs

Maximum Rs.2 Crores

Category B: For the promoters having CIBIL>600 & CMR≤6

       Minimum Rs.10 lakhs

       Maximum Need based

Second hand Machinery: The imported Second hand machinery directly purchased from the foreign supplier entering into India for the first time may be considered under category A (or) category B.

The maximum loan amount is restricted to Rs.2 crores for second hand machinery, both indigenous and imported machinery purchased locally.

Financial Norms

Debt Equity Ratio

Category A : 2.50 : 1.00

Category B : 2.00 : 1.00

Second hand machinery : 2.00 : 1.00

Promotion Contribution

Category A: Entire machinery cost as per the Proforma will be considered for assistance for machinery items supplied by standard suppliers / Approved suppliers / Suppliers duly verified by TIIC. Cost of erection, electrical and other expenses shall be borne by the customer.

Category B: 15%

Second hand Machinery

40% for purchase of Second hand machinery by new units.

33 1/3% for purchase of second hand machinery in case of new clients.

25% for purchase of second hand machinery in case of TIIC’s clients.

Category A: 25% Secured Deposit (or) 25% Immovable property as Collateral Security.

Category B: 25% Immovable property as Collateral Security.

100% for Second hand machinery, both indigenous and imported machinery purchased locally.