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Bank of Baroda, for rural India, with rural India.
Scheme for Financing Compressed Biogas (CBG)
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Features
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Most Important Terms and Conditions (MITC)
Scheme for Financing Compressed Biogas (CBG) : Features
Purpose |
A financing scheme to set up a Compressed Biogas Plant. |
Eligible Projects |
Compressed Bio Gas plants across India with a minimum design capacity of CBG plant i.e., 2 tons per day. |
Eligible beneficiaries |
Entrepreneurs viz., sole proprietorship, partnerships, limited liability partnership, companies and cooperative societies and other constitution of borrowers permissible by Ministry of Petroleum and Natural Gas who have been awarded Letter on Intents (LOI) by Oil Marketing Companies (OMC) for production and supply of Compressed Bio Gas (CBG). |
Nature of facility |
Working Capital/Term Loan/Bank Guarantee/LC. |
Credit Rating |
Minimum internal rating should be BOB 6/MSMEBOB 6. |
Margin |
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Interest Rates & Charges |
Rate of interest ranging from BRLLR+SP+0.50% to BRLLR+SP+5.40% based on internal credit rating and immovable property security coverage (including both primary and collateral immovable properties). (Present BRLLR: 6.85%).
The rate of interest shall be charged @1% over and above the rate of interest applicable to accounts having an aggregate limit up to Rs. 50 crores.
As per the classification of account vis. MSME/corporate advances. |
Loan Tenure & Repayment |
The term loan to be repayable in 10-15 years (including moratorium of a minimum of 6 months and maximum of 2 years period). Repayment: Monthly/quarterly based on cash flow of the project. |
Security |
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Subsidy |
As per the notification of the Ministry of New and Renewable Energy, Central Finance Assistance (CFA) of Rs. 4 crores per 4,800 Kg of CBG per day generated from 12,000 cubic meters of Biogas per day with a maximum of Rs. 10 crore per project. |
Scheme for Financing Compressed Biogas (CBG) : Most Important Terms and Conditions (MITC)
Eligible Project | Compressed Bio Gas plants across India with minimum designed capacity of CBG plant is 2.0 Tons per day | |||||||||||||||||||||||||||||||||||
Eligible beneficiaries | Entrepreneurs viz. Sole proprietorship, Partnership, Limited Liability Partnership, Companies and cooperative societies and other constitution of borrowers permissible by Ministry of Petroleum and Natural Gas who have been awarded Letter on Intents (LOI) by Oil Marketing Companies (QMC) for production and supply of Compressed Bio Gas (CBG). | |||||||||||||||||||||||||||||||||||
Rate of Interest |
For loans with aggregate limit upto Rs 50.00 Crore
For loans with aggregate limit Above Rs 50.00 Cr and upto Rs 100Cr: Rate of Interest shall be charged @1% over and above the rate of interest applicable to accounts having aggregate limit of Rs 50 Cr |
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Security |
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ESCROW account |
CBG Plant owner will maintain an ESCROW account. Payment received from the sale of CBG and Bio Manure will be received in this ESCROW account Escrow Account Charges to be recovered on annual basis |