Cement and Energy

Terms of assistance • Rate of interest • Assistance available as foreign cuiTency loan designated in US Dollars or as Rupees Loan, would carry interest at the applicable rates prevailing at the time of sanction of assistance. With a view to encouraging energy efticiency in the targetted sub-sectors. industri al concerns approaching lOBI for assistance for expansion projects, which envisage balanced use of conserved energy ari sing from technological restructuring would also he considered for financing under the line of credit. Up-front fee Up-front fcc of 1.05% on the sanctioned loan amount will be payable. • Period of repayment l11e loan(s) will be repayable over a period not exceeding I 0 years including a moratoriumm upto 3 years on repayment of principal. • Security The loan(s) shall be secured by way of mortgage and/or hypothecation of assets of the project/industrial concern. Special conditions In addition to the normal terms and conditions of sanction of financial assistance by lOBI, the following special condHions would apply to assistance under the scheme : • Financial and economic indicators l11c prqjccts must have an economic internal rate of return of at least 12% p.a. and a financial internal rate of return in excess of the cost of capital in real terms after tax. l11e debt : equity ratio for the company should be maintained not higher than 1.5: I and debt service coverage ratio should he at least 1.5: 1