Last Updated on: 28/01/2025
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CBG under SATAT – (Compressed Biogas Scheme)
Objective
To provide Sustainable Alternative Towards Affordable Transportation (SATAT), for efficient municipal solid waste management and to tackle the problem of polluted urban air due to farm-stubble burning and carbon emissions, Lowering pollution and carbon emission.
Nature and Purpose of Advance
Term Loan can be considered for purchase of plant and machineries, construction of factory, Office etc and all other movable fixed assets required for setting up of CBG plant and working capital finance to be considered based on requirement of the project.
Quantum of Loan
Minimum- No minimum
Maximum- No minimum
Eligibility
Compressed Biogas plants across India with minimum designed capacity of CBG plant is 2.0 Tons per day.
Security
Prime security: Hypothecation of stocks / book debts / machineries / EM of factory land & building / charge on assets created out of Bank finance.
Collateral: SARFAESI compliant Immovable property by way of EM of property & other tangible/liquid securities (MMD/FD/LIC policy etc) belonging to the Borrower/ Guarantor with minimum 50% coverage.
Margin
Term loan: 25% of the project cost (excluding IDC, preliminary /pre-operative expenses, contingencies, and margin on working capital)
Working capital: Minimum 30%.
Repayment
Term loan is repayable in 12 to 15 years from the date of commencement of commercial operation.
Holiday Period
Minimum 6 months to Maximum 24 Months
Rate of Interest
Less than Rs. 1.00 Crore:
1 Year MCLR
1.40%
10.50%
Above Rs. 1.00 Crore:
Rating - IOB 1 & IOB 2
1.60%
10.70%
Rating-IOB 3
1.85%
10.95%
Rating-IOB 4
2.10%
11.20%
Rating-IOB 5
2.70%
11.80%
Rating-IOB 6 and above
3.20%
12.30%
*1 Year MCLR (9.10% at present)
Externally Rated Accounts:
AAA
AA
A
BBB
Processing charges
Processing charges @ 0.40% of limit + GST to be collected for cash credit and NFB limits.
Upfront fees @ 0.71% of term loan amount + applicable GST to be collected.
Subsidy
As per notification of the Ministry of New and Renewable Energy, Central Finance Assistance (CFA) of Rs 4.00 Crores per 4,800Kg of CBG per day generated from 12,000 cubic meters of Biogas per day with a maximum of Rs 10.00 Crore per project.
*Conditions apply
*For more details, please contact our nearest branch
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