Page 45 - Banking Finance December 2022

ARTICLE

Bank loans under Priority Sector Lending: Interest Subvention under
Loans to entrepreneurs for setting up Compressed Bio Gas (CBG) plants have been
AIF scheme:
included under Priority Sector Lending (PSL) under Agriculture Infrastructure.
Loans under AIF financing facility will
Loans for agriculture infrastructure will be subject to an aggregate sanctioned
have interest subvention of 3% per
limit of Rs. 100 crore per borrower from the banking system. Assessment of the
annum up to a limit of Rs. 2 crores. This
credit facilities will be done as per Banks' extant guidelines.
subvention will be available for a
maximum period of 7 years. In case of
Central Financial Assistance (CFA) provided by MNRE:
loans beyond Rs.2 crores, then interest
Ministry of New and Renewable Energy provides capital subsidy for Compressed
subvention will be limited up to Rs. 2
Biogas (CBG) projects under "Programme on Energy from Urban, Industrial,
crores.
Agricultural Wastes/Residues and Municipal Solid Waste".
As per the revised guideline dated 28th February 2020, the scheme is extended Credit Guarantee under
till 31st March 2021 or till the date the recommendations of 15th FC come into
AIF scheme:
effect.
Credit guarantee coverage will be
available for eligible borrowers from
Details of MNRE subsidy for CBG projects (as per the latest guidelines) are as
this financing facility under Credit
follows:
Guarantee Fund Trust for Micro and
Product CFA Description
Small Enterprises (CGTMSE) scheme for
BioCNG / Enriched Rs 4.0 Crore per Upcoming Biogas plants, a loan up to Rs. 2 crores. The fee for
Biogas / Compressed 4800 kgs of BioCNG/ which produce BioCNG / this coverage will be paid by the
Bio Gas day generated from Enriched Biogas Produced Government. In case of FPOs the credit
12000 m3 Biogas/day from Biogas generated guarantee may be availed from the
(Mweq) with a through biomethanation of facility created under FPO promotion
maximum CFA - Urban waste including scheme of DACFW.
Rs 10 Crore/project segregated MSW/
Agricultural Waste / Assured offtake of CBG:
Industrial wastes / Effluents
Ministry of Petroleum and Natural Gas
or mix of these wastes, are provides support for CBG projects under
eligible for this financial
Sustainable Alternative Towards
assistance.
Affordable Transportation (SATAT) in the
In case developer wants to form of assured offtake of CBG @Rs. 46/
set up BioCNG/Enriched Kg by Oil Marketing Companies.
Biogas generating unit at
already existing Biogas
Major Steps Involved:
plant or at distillery
effluent-based Biogas Expression Of Interest:
plant, applicable CFA will be An Expression of Interest is floated by
Rs 3.0 Crore/MWeq Oil & Gas Companies every month.
Each EOI is open for a stipulated time
period of 30 days. Once an EOI is
Convergence with Agriculture Infrastructure Fund
closed, another EOI is floated in the
Scheme: next month. In the application,
CBG plant is included as eligible project of Agriculture Infrastructure Fund (AIF) applicant shall put location of the
under building community farming assets subject to condition that CBG plants may proposed/existing plant's location as
be established by eligible beneficiaries of AIF like PACS, Marketing Co-operative well as expected CBG Production
Societies, FPOs, SHGs, Multipurpose Cooperative Societies, Agri-Entrepreneurs, Capacity. Applicants are free to
Startups and projects promoted by Central/ State/ Local governments or their propose more than one CBG Plant
agencies under PPP and can avail the benefits under AIF scheme. under one application.

BANKING FINANCE | JANUARY | 2023 | 45