IND MSE SPICE Scheme

·       Reuse: Reducing resource loops aims to extend the utilization period of products.

·       Recycle: Closing resource loops means creating a circular use of resources by connecting the post-use stage with the production stage. It implies re-processing waste materials “into products, materials, or substances whether for the original or other purposes.

ü Only Brownfield units are eligible under the scheme.

ü The investment of the unit should be towards the 11 identified CE sectors as per scheme guidelines.

ü MSE units must comply with Extended Producer Responsibility (EPR) and Waste Recycling targets set for industries.

ü MSEs will be eligible for any one subsidy i.e either MSE- GIFT or MSE-SPICE.

ü CMR of 1 to 4 or equivalent CIC score.

ü In case of CMR-NA, CIC score of promoters should be 750&above.

1. Plastic,
2. Rubber,
3. Electronic waste,
4. Municipal solid waste & liquid waste,
5. Compressed biogas,
6. Lithium-ion batteries,
7. End-to-life vehicles,
8. Scrap metal — ferrous and non-ferrous,
9. Solar panels,
10. Hazardous industrial waste, used oil waste.
11. Gypsum, toxic,

ü The maximum Plant & Machinery cost admissible under the scheme for subsidy is Rs.50 Lakhs for Brownfield Projects, However, projects with cost of Plant & Machinery exceeding Rs.50.00 Lakhs, the subsidy is limited upto a maximum of Rs 12.50 Lakhs.

ü  The maximum subsidy amount for Plant & Machinery costing up to Rs.50 Lakhs is INR 12.5 Lakhs.

ü  For projects exceeding Rs.50 Lakhs, the subsidy is limited to a maximum of Rs.12.50 Lakhs

ü  Projects in line with the Circular Economy (CE) principles are eligible for the subsidy.

ü  Term Loan sanctioned and disbursed by banks for acquiring new plant and machinery for technology and process up-grade shall qualify for a subsidy under the scheme subject to compliance with extant scheme guidelines notified by SIDBI from time to time.

Maximum: Rs 1.00 Cr

 Collateral Security:

ü  Nil collateral, if covered under CGTMSE. Guarantee Fee to be borne by borrower.

ü  Coverage under Hybrid model is also permitted as per extant CGTMSE guidelines.

ü  In case, the borrower is not willing to cover under CGTMSE, then Minimum 50% coverage of Bank Exposure to be covered by way of realizable sale value of immovable properties/liquid securities.

Personal Guarantee: Personal Guarantee of Partners / Directors as per extant guidelines.

Period

• Minimum Repayment Period: 36 Months including moratorium period                   (As per Scheme)
• Maximum Repayment : Upto 60 Months

Other Constitution based documents.

charges

• Processing Charges /Upfront Charges – 50% of Card Rate.
• Documentation charges – 50 % Card Rate
• Other Charges as per Service Charges Circular.

Any deviation in benchmark ratios to be dealt as per delegated powers.

·      Factory Address

·      Location of the factory (Backward or Non-backward area)

·      Date of incorporation/commencement of production

·      Product(s)/Subsector

·      Installed capacity.

·      Past Performance for the last three years based on audited balance sheets

·      Total cost of the scheme as approved by Bank

·      Total Sources of funding as approved by Bank

·      Time frame for completion of the project

·      Incremental benefits from implementation of the project

·      List of eligible plant and machinery along with their detailed specifications, rates, quantities, and total value for which subsidy under MSE-SPICE is claimed.

2.   Amount should be remitted directly to the dealers / suppliers by means of DD / NEFT / RTGS.

3.   Units should obtain necessary approvals from the statutory/ regulatory authorities.

4.   All securities should be adequately insured with Bank Clause– Premium to be borne by the borrower.

5.   Promoters’ contribution should be brought up front proportionately.

6.   Pre-Release Audit/legal Audit are to be conducted as per extant guidelines of Credit Policy.

7.   Charges to be registered with ROC/other authorities as per extant guidelines.

8.   Compliance to KYC/ AML and other guidelines to be ensured.

9.   Credit Policy guidelines to be complied. Any modifications in the credit policy from time to time will form integral part of the scheme.

10. Standard operating procedure for claim of Capital subsidy under the scheme is detailed in Annexure – II.

11. Application form for assistance under scheme for Promotion and Investment in Circular Economy  (MSE Spice) is appended in Annexure – III

12. Relaxation if any of the product features to be placed to COLCC(GM) for approval including relaxation in Repayment Period.