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TO ALL MEMBERS OF THE ASSOCIATION
Dear Sir,
Sub : Technology
Upgradation Fund Scheme (TUFS)
We would like to inform you that the
Government of India has appointed 12 additional Nodal Banks
to facilitate -early release of the interest reimbursement
under TUFS. A Circular in this regard is uploaded at the
CMAI web site, which provides the Names and also Procedures
/ Modalities etc.
Members who have availed of loan from these
12 Nodal Banks can claim the subsidy quickly.
This is for your information.
Thanking You,
Yours Truly,
P. Chandrasekharan
Secretary
GOVERNMENT OF INDIA
MINISTRY OF TEXTILES
OFFICE OF THE TEXTILE COMMISSIONER
POST BAG No. 11500, MUMBAI - 400 020
Fax: 022 - 22002495, E-mail:
dirss@txcindia.com
Website: www.txcindia.com
No. 28(19)/2005/MS
Date: 5th Sept., 2005
Circular No. 4
(2005-2006 Series)
Sub: Technology Upgradation Fund Scheme (TUFS).
I.
Additional 12 nodal banks under TUFS.
The Inter-Ministerial Steering Committee (IMSC)
in its 19th meeting held at New Delhi on 25th July, 2005
decided to co-opt additional 12 nodal banks under TUFS for
the cases financed by them. The identified 12 banks have
consented to become nodal banks under TUFS. The names of the
12 banks are as under:
1) State Bank of India
2) Bank of India
3) EXIM Bank
4) Central Bank of
India
5) Punjab National Bank
6) Andhra Bank
7) Union Bank of India
8) Indian Overseas Bank
9) Bank of
Baroda
10) ICICI
Bank
11) Canara Bank
12) National Co-operative Development Corporation (NCDC)
(i) The nodal banks will determine
the eligibility and release the TUFS benefit in respect of
all the cases financed by them under TUFS including non-SSI,
SSI and also cases covered under 15% CLCS TUFS for SSI
sector and 10% capital subsidy for specified processing
machinery. The State Bank of India will also function as
nodal bank for its seven associate banks.
(ii) The
cut-off date for additional nodal banks is
1st October, 2005.
In respect of ongoing cases under TUFS, Nodal Banks shall
administer interest reimbursement for the quarter
July-September 2005 (payable from October I, 2005) and
onwards. In respect of new cases and past cases (for
which interest reimbursement has not been claimed from IDBIL/SIDBI
for some reason altogether or for some period), interest
reimbursement shall be administered by Nodal Banks from
October I, 2005, though the claim/s may pertain to period
earlier than quarter July-September 2005.
(iii) The Nodal Banks shall examine
eligibility of cases from TUFS-angle before a project
becomes eligible to the benefit of interest reimbursement
under TUFS.
(iv) In case of consortium financing,
the consortium leader shall assess eligibility of the
project under TUFS for itself and also for other members of
the consortium, provided the consortium leader is a nodal
bank. In case consortium leader is not a nodal bank, the
nodal bank with major share of term loan shall assess the
eligibility of the project.
(v) In case of financing by multiple
banks, the bank with major share of term loan shall assess
eligibility of the project under TUFS for itself and also
for other banks, provided the said bank is a nodal bank. In
case bank with a major share of term loan is not a nodal
bank, the nodal bank with major share of term loan shall
assess the eligibility of the project.
(vi) In case of consortium financing I
financing by multiple’ banks, the individual banks shall
administer interest reimbursement to their assisted units,
provided the banks are nodal banks. However, IDBIL /SIDBI
shall administer interest reimbursement to those ‘banks’ of
the consortium I multiple banking arrangement which are not
nodal banks, for which purpose IDBIL / SIDBI shall be
endorsed / forwarded a copy of eligibility certificate by
the nodal bank, issued to such banks.
(vii) Nodal Banks shall examine
eligibility of new cases, as well as of existing cases
(i.e., already assessed by IDBIL/ SIDBI) in case of change
in scope (on the lines as if fresh case) / change in
repayment schedules / funding of interest / takeover of loan
/ conversion of Rupee Term Loan (RTL) to Foreign Currency
Loan (FCL) and vice versa, etc., from 1-0ct-05.
(viii) IDBIL /SIDBI
shall examine all the cases received upto
September 30, 2005.
The references / proposals which are not cleared by IDBIL /SIDBI
under TUFS for want of additional information, the same
shall be attended to by new nodal banks in the light of the
query made I raised by IDBIL / SIDBI.
(ix) Nodal Banks would have retained
correspondence on their files in respect of existing cases
examined by IDBIL /SIDBI under TUFS. IDBIL /SIDBI shall,
therefore, retain the existing case files for the time
being. The files shall be transferred to respective nodal
banks in due course of time.
(x) Nodal Banks shall submit annual
forecast of funds required, about 6 months in advance of
budget, to Ministry of Textiles (MoT), Government of India (Gol),
New Delhi, for necessary budgetary allocation, followed by
submission of quarterly interest reimbursement claims to MoT,
GoI, New Delhi, 1-112 to 1 month in advance of due date
(viz., 1st July / 1st October / 1st January / 1st April)
based on principal outstanding amount in respect of their
assisted cases, for actual release of funds by MoT, GoI, New
Delhi.
(xi) Nodal Banks shall submit
utilisation certificate to MoT, Gol, New Delhi in prescribed
formats on monthly I quarterly basis before submission of
next quarterly claim in the prescribed format.
(xii) As funds will be placed by MoT,
GoI, New Delhi, with Nodal Banks in advance, they shall open
a dedicated account for keeping, the funds so released by
MoT, GoI, New Delhi. Any interest that may accrue on the
balances lying pending release in the dedicated account
shall be adjusted against future quarterly claim, to be
lodged with MoT, GoI, New Delhi.
(xiii) Nodal Banks shall maintain requisite
database of company /project wise eligibility established I
pending references for TUFS-eligibility/interest
reimbursement effected, etc. for information: to Office of
the Textile Commissioner, Mumbai / MoT, Gol, New Delhi, and
parliament questions, if any.
(xiv) The Nodal Banks will try to
implement an ‘on-line system’ for expeditious clearance of
the TUFS cases and releasing of TUFS subsidy to the
beneficiary.’ The SIDBI has implemented such a system, if
needed, the nodal banks may contact SIDBI for assistance in
this regard.
(xv) IDBIL / SIDBI would render advisory
services to Nodal Banks during the formative stage and will
organise work shops for the .benefit of the nodal banks ‘on
demand’ basis.
(xvi) In case of any doubts regarding
eligibility of a case or any other related issue nodal banks
may contact IDBIL / SIDBI or office of the Textile
Commissioner for guidance / assistance.
(xvii) The nodal
banks will decide the TUFS eligibility of a case within 4-6
weeks of sanction of the loan, subject to the condition that
interest reimbursement is released to the TUFS beneficiary
within one I two days of payment of interest.
II.
Co-option of additional banks by Nodal Agencies.
(i) Industrial Development Bank of
India (IDBI), the nodal agency for non-SSI sector of the
-textile industry has co-opted United Bank of India, Kolkata,
Prime Co-operative Bank Ltd., Surat, The Maharashtra State
Co-op. Bank Ltd., Mumbai and The Sarvodaya Sahakari Bank
Ltd., Surat.
(ii) Small Industries Development
Bank of India (SIDBI), the nodal agency for SSI sector of
the textile industry has co-opted Shri Parshwanath
Co-operative Bank Ltd., Sangli and The Kalyan Janata
Sahakari Bank Ltd., Kalyan.
The above modification in the TUF scheme may
please be brought to the notice of all concerned.
(Smt Shashi Singh)
Joint Textile Commissioner
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