TIIC Windmill Scheme
TIIC Windmill Scheme
Tamilnadu Industrial Investment Corporation (TIIC) has launched the windmill scheme to provide financial assistance on the purchase of new windmill. Under this scheme, all manufacturing sector, service sector and standalone projects can avail loan of up to 75% of the total project cost. In this article, we look at the TIIC Windmill Scheme in detail.
Also, read about TIIC Generator Scheme
Any new or existing units are eligible to avail loan under the TIIC Windmill Scheme.
Quantum of Loan
The maximum loan amount considered under the scheme is given below:
|S.No||Type of Business Entity||Individual||Group|
|1.||Proprietary||Rs.15 crores||Rs.30 crores|
|2.||Partnership||Rs.15 crores||Rs.30 crores|
|3.||Private or Public Limited Companies||Rs.30 crores||Rs.40 crores|
Under the TIIC windmill scheme, the minimum promoter contribution will be at the rate of 25% of the total project cost.
Debt Equity Ratio
The debt-equity ratio fixed for the promoters or borrowers will be 2.00:1.00.
The borrowers are required to repay the loan amount within 5 to 7 years, including the moratorium period or holiday of six months to one year.
As per the existing norms, it will be decided by the Corporation on a case to case basis on merits.
Rate of Interest
The interest charged for the loan amount will be the rate of 11.95% for existing customers and 12.20% or new customers.
- The interest can be paid either on a monthly or quarterly basis.
- In the event of delay in the repayment period, the penal interest at the rate of 2.50% per annum will be charged.
The applicant has to make the registration fee while registering for the windmill scheme.
- In the case of a loan processed by the Branch Sanction Committee (BSC), the registration fee of Rs.10,000 has to be provided.
- In the case of a loan processed by the Head Office (HO), the registration fee of Rs.50,000 has to be provided.
The applicant is requested to make an investigated fee along with the registration fee before the prescribed sanction committee sanctions the loan proposal.
|S.No||Loan Amount||Investigation Fee|
|1.||Loan up to Rs.10 lakhs||Rs.5000|
|2.||Loan more than Rs.10 lakhs and up to Rs.50 lakhs||Rs.10000|
|3.||Loan more than Rs.50 lakhs and up to Rs.100 lakhs||Rs.30,000|
|4.||Loan more than Rs.100 lakhs and up to Rs.200 lakhs||Rs.40,000|
|5.||Loan more than Rs.200 lakhs and up to Rs.300 lakhs||Rs.50,000|
|6.||Loan more than Rs.300 lakhs and up to Rs.5000 lakhs||To the extent of 0.20% of the loan amount.|
|7.||Loan more than Rs.2000 lakhs||Rs.5 lakhs|
The following are the documents to be attached along with the application form:
- In case of Partnership firm, partnership deed and firm registration certificate.
- In the case of Corporate body, Memorandum of Association (MOA), Articles of Association (AOA) and business commencement certificate are required.
- Copy of SSI certificate or SIA acknowledgement is required.
- Bio-data of the partners, proprietor, directors including passport size photographs, qualification or experience certificate in the prescribed format.
- Net worth statement of each promoter (partner, proprietor, guarantor, director) in the prescribed format has to be enclosed.
- Wealth tax or income tax clearance and assessment orders of the proprietor, partner, director and the applicant unit for the last three years.
- Shareholding pattern with respect to corporate bodies.
- Details of existing machinery and building.
- Details of existing charge on fixed assets.
- In case of textile unit opting for windmill loan under TUF scheme, details of existing machinery and plant in the prescribed format.
- Description of the manufacturing process in the diagrammatic representation.
- Details of Installed capacity and calculation.
- Details about the market status for the existing product or activity and availability of raw material.
- Copy of power sanction letter.
- Copy of pollution control board clearance certificate for the existing activity if required.
- Last three years profit or loss account and audited balance sheet of the units.
- Details of financial assistance availed from the banks or financial institutions, if applicable.
- Performance warranty and guarantee of the machinery from the machinery supplier.
- Cash flow statement and projected profitability for the loan period as proposed.
- Brief description of the company and its operation, project report and future prospects.
- Litigation if any against the company with details.
- Any other remarks.
Application Procedure for Windmill Scheme
To avail subsidy from TIIC, the applicant has to apply in the prescribed application form which is available in all the TIIC office. On completion of an application with the details, submit it to the same office along with the mandatory documents. Then the concerned authority will release the loan once your application is approved. Also, the application form is given below in the pdf format for your reference.windmill_application_form
Note: In need of assistance in obtaining loan for the purchase of windmill, can contact indiafilings business advisors will assist in availing loan through the simple procedure.
Refund for Rejection of Loan
In the case of rejecting of the loan application, the prescribed fee will be returned as given below:
If the applicant withdraws the loan proposal before sanction, the investigation fee paid as the second instalment will be considered for refund at the rate of 50% on fees paid. However, the registration fee initially paid will not be refunded.
If the Corporation rejects the loan application or the applicant withdraws the application after sanctioning the loan amount, where no reimbursement will be provided.