Objective

The financial assistance is intended for the following activities of MSME and Large enterprises:

 i.       Setting up of Solar plant including rooftop solar plants, Wind Mill and Bio energy (Biogas) plant, by new units as well as existing units for their captive consumption.

ii.       Setting up of Solar plant, Wind Mill and Bio energy (Biogas) plant, by existing units for sale of power to TNEB / to Third Party.

iii.       Retrofitting the existing Wind Mills to enhance their efficiency and power output.

iv.       Purchase of Second hand wind mills functioning in Tamilnadu.

v.       Electric Vehicle (EV) manufacturers, EV battery manufacturers, EV battery Swapping and charging stations.

vi.       Purchase of Energy Efficient equipment and machinery for transition purpose and other initiatives that minimize carbon emissions (i.e.) decarbonisation.

vii.       Manufacture of solar power plants / windmill components exclusively.

Purpose of Loan

a)     Financial assistance can be considered for site development (levelling, road formation etc.) civil works (fencing, store / warehouse, substation, control room etc.), purchase of Plant & Machinery, testing equipments, quality control devices, Transport & Erection charges and Electricals, etc., on turnkey basis or otherwise.

b)     Land cost in respect of solar power projects is not eligible for loan purpose.

c)      Retrofitting and purchase of second hand wind mill.

d)     For purchase of Energy Efficient machinery / equipments.

e)      For purchase of rooftop solar equipments

f)       For Manufacture of Solar plant /Wind Mill Components

Eligibility

 i.    Only existing MSME & Large Enterprises (both assisted & non-assisted) are eligible for setting up of solar / wind mill power plants for sale of power to TNEB or to third party.

ii.    New as well as existing MSME & Large Enterprises are eligible for setting up of new solar plants including rooftop solar/ new wind mills / second hand wind mills for captive consumption.

iii.    Existing units (both assisted & non-assisted) proposed to set up solar / wind mill for the sale of power to TNEB / third party, shall comply the following:    

·  Units should be in operation for last 3 financial years.

·  Units should have earned cash profit for last 3 years.

·  The New worth of the units should be positive.

· Units should be in Standard category with respective institutions for the last 2 years as per CMR.

Constitution

Proprietary/Partnership/LLP/Private & Public Limited Companies.

Promoters Contribution:

 Existing Units: 15%

 New Units: 25%

Debt Equity Ratio

3.00 :1.00 (Overall)

Debt Service Coverage Ratio

More than 1.50 : 1.00

Repayment Period

 Upto 9 years including moratorium period of 2 years.

Collateral Security

 I.   For sale of Power to TNEB / captive use

i)   Existing Units (both assisted & non-assisted units) which are in Standard category for not less than 3 years –  35%

ii)  For New units – 50%

II.   For sale of Power to third party : 75%

In case of Wind Mills:

 For New wind mills: 20%

Used Wind Mills: 75% if the age of wind mills is within 6 years & 100% if the age of Wind mill is above 6 years.

·         Good, easily marketable immovable property in the form of land / land & building to be offered.

·         For EC / Board cases, the collateral security shall be decided on case to case basis.

·         The proposed solar power project site / Wind mill site shall not be taken for collateral coverage.

·         Agriculture land (wet lands) cannot be taken as collateral security.

For Other Categories: 50% collateral security shall be stipulated for both new and existing units