RAJASTHAN FINANCIAL CORPORATION
Ref: RFC/MTC-131/460������������������������������������������������� Dated 06.08.2004
Sub: Scheme for financial assistance to Wind Farm/ Wind Turbine Generator.
The �Board of Directors in its meeting held on 21.6.04 has decided to adopt the scheme to provide financial assistance to Wind Farm/ Wind Turbine Generator. The scheme is enclosed. Since the scheme will be operated through Technical Cell, all field offices are �required to forward applications alongwith required documents� to DGM(Technical Cell).
Field offices are also advised to contact good borrowers, established� entrepreneurs, profit making� ventures and educate them regarding long term benefits of this project like low cost of generation, no recurring cost of fuel and very low O&M cost, 80% depreciation allowed in 1st year, exemption from income tax for 10 years and electricity duty for 5 years etc. Specially, these projects are environment friendly and entrepreneurs can put up these projects without disturbing �their present activity/ manpower.
All concerned are, therefore, advised to popularize this scheme and garner maximum business under the scheme.
SCHEME FOR FINANCIAL ASSISTANCE TO WIND FARM/WIND TURBINE GENERATOR
Financing of wind farm and individual Wind Turbine Generator (WTG) may be considered. Eligibility criteria and other salient features of the scheme are as under:
A borrower may establish wind farm or individual WTG for captive use of generated power or may sell the generated power to JVPNL (SEB/Power company)/Third party� through power purchase agreement (PPA).
May be required based on financial parameters of the project.
The minimum promoter�s contribution shall be 33% and the same is to be invested before first disbursement of loan.
Loan from Rs.50.00 lac to Rs.1000.00 lac can be considered under this scheme.
The moratorium period shall not exceed twelve months from the date of first��� disbursement. �����������������������������������
(a) Project debt/equity ratio������������ - Not to exceed 2:1
The loan shall be repayable in ten years ; including moratorium period not exceeding one year.
The Corporation shall charge interest @ 11.25%
Rebate for timely payment @ 1.50% shall� be provided to the borrowers. However, no rebate shall be applicable in cases covered under TUF.
For non TUF cases�����������������- 9.75%
The borrower shall pay processing charges @ 1.20% of sanctioned loan amount; before issuing sanction letter.
The liquidated damages shall be levied on the amount of default for the period of default. Failure to pay instalments/interest on due dates would attract 3.00% penal interest in addition to the normal interest rate.
The borrower shall furnish 37 PDCs for the payment of principal loan amount which shall fall due quarterly for the repayment period. Payment of interest shall also be made separately through PDCs. From 2nd to 4th year, 25% of principal loan amount and from 5th to 10th year, 75% of principal loan amount would be recovered from the borrower by way of balooning method.� The first instalment of interest shall fall due on the first day of quarter ie March, June, September and December. �����������������������������������
����� upto Rs.1.00 crore��� - 10,000/-
H.O., as per� existing delegation of powers.
The loan shall be disbursed in the following manner:
For the purpose of recovery, same procedure as prescribed vide letter No. RFC. F. GBD/ Gen. 25/2195 dt. 21.5.04 for GBD cases shall be applicable� except that all cases having default exceeding two quarters shall be monitored by Technical Cell. All such cases with full details and recommendations shall be referred to DGM(Technical).
Work related to availing refinance from Rural Electrification Corporation ( REC) and TUF benefits from �Ministry of Textile�/ IDB/SIDBI shall be looked after by Finance Section.
Approval from RVPNL/concerned DISCOM is to be obtained for wheeling arrangements before first disbursement of loan in case of captive consumption of power.
Notarised photocopy (true copy) of lease deed executed between Government of Rajasthan and WTG supplier/Land Developer Company will be submitted before first disbursement. The period of lease would be 30 years. �����������������������������������������������������������������������
�The borrower shall give an undertaking to the Corporation and shall satisfy the Corporation that the manufacturer of wind turbine shall provide self certification about the quality and performance of their equipments. They will be penalized if their machines are found not to perform as per the performance certified by them. This clause is stipulated by the Government of India in the Ministry of Non Conventional Energy Sources ( MNES) as per the new guidelines and certificate is to be obtained from machine manufacturers by the borrower. Further the borrower has to take care of this clause as per its project needs and stipulate necessary penalty clause in the contract/ agreement with machinery supplies. The� borrower shall certify that they have complied/ ensured compliance of the guidelines of MNES to the satisfaction of the Corporation�.
0141-2385522 (Ext. 333)
Udyog Bhawan, Tilak Marg, Jaipur, Rajasthan, INDIA