1

INDEX
S.No
1 Acceptance

Particular

of
Agricultural
Collateral Security

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Land

Page No Item No
63
42.2
as

Advance Margin
Age Limit
Analysis of Profit and Loss A/c
Approval from local authorities
Assets considered for collateral purpose
Bankers opinion
Banned Industries - List
Body building rates for Lorry, Passenger Bus,
Mini Bus and Van
Borrower who have settled earlier loans by
availing other than simple interest waiver
Borrower who have settled earlier loans under
ND&ND Scheme
Brick Kiln Rate
Building Rates
Business Intelligence Report (BIR)
CIBIL Defaulters list
Classificaiton of industries
Collateral Security Norms
Competitive quotation

Concluding Remarks
Contingencies
Corporate bodies
Cost of the Project
Credit Rating
DC Lands
Debt-Equity items
Details of Loan availed from Banks
Details of Loan availed from TIIC
Electrical
Entrepreneurs Memorandum for MSME
Expenditure incurred prior to the date of
application - Building
Expenditure incurred prior to the date of
application - Land
Firms
Fixed deposit - as collateral security
GREEN CATEGORY Industries
Green Field unit

47
13
20
52
64
16
70
36

37.2
10.1
14.2
41.5
42.3
13.0
Annexure I

22.0

12

9.2

12

9.3

26
24
14
15
8
54
35
69
41
10
21
66
65
44
13
11
40
52
37

17.2
17.1
10.3
12.0
7.0
42.0
21.3
45.0
28.0
8.1
16.0
43.0
42.6
34.0
9.4
9.0
26.0
41.1
23.2

37

23.1

11
64
75
2

8.2
42.4
Annexure II

3.0

INDEX
S.No
Particular
36 Guideline for valuation

Page No Item No
62
42.1

37 Import of machinery directly from foreign

supplier by opening letter of credit
38 Import of machinery directly from foreign
supplier on Document
against payment
basis(DP)
39 Import of Machinery under EPCGC Licence
40 Import of New Machinery
41 Imported Machinery-Estimation of Cost
42 Imported new machinery - purchase from
authorised local dealer / accredited agent
43 Imported Second hand machinery Purchase
from local dealers and from the units already
using them
44 Ineligible Units
45 Interest rate
46 Interest rate reset clause
47 Introduction
48 Investigation Fee For Existing Prompt Clients

29

21.1.3

30

21.1.4

29
29
29
31

21.1.2
21.1
21.1.1
21.1.5

32

21.1.7

12
48
48
1
4

9.1
38.2
38.1
1.0
5.1

49
50
51
52
53

5
3
2
14
22

5.3
5.0
2.0
11.0
16.1.1

54 Lead Time
55 Leasehold premises at SIDCO Industrial Estate

2
22

4.0
16.1.2

56 Leasehold private Land / Leasehold private

Land & Building
57 Legal opinion
requirement
for collateral
security/primary security
58 Legal opinion requirement for Leasehold
Premises
59 Legal
opinion
requirement
SIDCO/SIPCOT/DIC/GOVT.INDUSTRIAL
ESTATE SHEDS/PLOTS

22

16.1.3

27

18.2

26

18.1

27

18.3

Investigation fees
Investigation Fees Table and other fees
ISO Code
KYC norms
Land - SIDCO/SIPCOT/DIC/Govt.Industrial
Estate Sheds/Plots

INDEX
S.No
Particular
Page No Item No
60 Machinery purchased prior to six months and
37
23.3
up to eighteen months, prior to the date of filing
of application
61 Machinery purchased within six months prior to
38
23.4
the date of filing of application
62 Machinery Suppliers - Approved Manufacturers
34
21.2.2
63
64
65
66
67
68
69
70
71

Machinery Suppliers - Others

Machinery Suppliers - Standard/Reputed
Main Promoter/Key person
Manufacturing Enterprises
Margin on Security
Means of Finance
Moratorium/Holiday Period
Networth of the promoter
No lien for the existing Assisted and Non
assisted units functioning from a lease hold
premises
No lien for the existing Assisted units
functioning from own premises
ORANGE-I CATEGORY Industries
ORANGE-II CATEGORY Industries
Other Assets
Own Fabrication
Plant & Machinery
Power Intensive Industry
Pre Sanction Inspection
Preliminary & Pre-operative expenses
Processing Fee For SBL/TLCE
Promoters Contribution
Proposals coming up in Other Branch
Jurisdiction
Purchase of second hand industrial sheds
situated outside the Estate from private parties
/ purchase through auction sale of TIIC

34
33
11
8
47
42
50
13
27

21.2.3
21.2.1
8.3
7.1.1
37.1
32.0
39.0
10.2
19.2

28

19.3

Purchase of Second hand machinery

RED CATEGORY Industries
Refund of Investigation Fees:
Registered Medical Practitioners(RMP) - TNPCB
norms
89 Registration fees (Non refundable)

31
72
5
75

72
73
74
75
76
77
78
79
80
81
82
83
84

85
86
87
88

71
71
41
34
29
52
28
41
5
45
69
23

Annexure II
Annexure II

29.0
21.2.4
21.0
41.3
20.0
30.0
5.4
36.0
44.0
16.1.5

21.1.6
Annexure II

5.5
Annexure II

5.2

INDEX
S.No
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107

Particular
Page No Item No
Repayment Schedule
50
40.0
Risk Coverage Receipts
6
5.7
Sanctioning Authority
7
6.0
Scheme & Eligibility
21
15.0
Second Hand SIDCO Sheds
23
16.1.4
Security and Margin on Security
47
37.0
Servicing Enterprises
9
7.1.2.
Subsidy Eligibility
43
33.0
Technical Know how
41
27.0
Third Party Collateral Security
65
42.5
TNPCB Consent
52
41.6
Transport & Erection
40
25.0
Turnkey Projects
39
24.0
Unsecured Loan
45
35.0
Upfront Fee
6
5.6
Water
52
41.4
Working capital Margin/Requirement
41
31.0
Working Results & Financial Position of the
17
14.1
applicant/associate concern

HO/Projects/Guidelines/2011-12

05.05.2011

READY RECKONER FOR PREPARING THE APPRAISAL

MEMORANDUM FOR SCHEMES OTHER THAN GES & BFS
-------------------------------------------------------------------------------

1.0

INTRODUCTION:

Our Corporation being the premier State Level Financial

Institution has been in the forefront of development of
industries especially the Micro and Small Enterprises in state of
Tamilnadu since 1949. Over the decades of its experience in
appraisal of various industrial projects, several guidelines
/circulars have been issued from time to time to ensure the
highest standards set by the Corporation. With the view to
maintain the quality standards and uniformity in preparation of
Appraisal Memorandum to be placed before various sanctioning
authorities

viz.,BSC/RLSC/HSC/EC/BOARD,

the

latest

policies/norms have been furnished as ready reckoner for the

appraisal officers in preparation of appraisal memorandum. The
crisp details of norms/policies are given in the same order of the
appraisal memorandum format being used by the Corporation
for easy reference.

-2-

2.0

ISO Code:

ISO code shall be indicated on top right corner of the

appraisal memorandum/note/Terms & conditions:
S.No Name of the Format
1
2
3

4
5
6
7

9
10
11

Format No.

Note
to
the
Head
Office
Screening Committee
Memorandum to the E.C/Board
Note for sanction of Financial
Assistance
under
Transport
Scheme by B.M
Memorandum to the Branch
Sanction Committee
Appraisal Memorandum for Bill
Finance Scheme
Sanction Letter for TL against
Credit Linked Capital Subsidy
Terms
and
Conditions
of
sanction of assistances
(Tpt. Loan only)
Terms and conditions of sanction
for
proprietary/
partnership
concern
Terms
and
Conditions
of
sanctions for Corporate Body
Terms and conditions for Bill
Finance
Sanction of Subsidy Bridge Loan
(SBL) Intimation

QP/05/HO/F/11
QP/05/HO/F/12
QP/05/BR/F/06

QP/05/BR/F/07
QP/05/BR/F/08
QP/05/BR/F/10
QP/05/BR/F/13

QP/05/BR/F/14

QP/05/BR/F/15
QP/05/BR/F/16
QP/05/HO/BR/F/17

Ref: ISO Manual

3.0

Green Field unit:

For New unit Yes;

For Existing No

Greenfield is a new project. Brownfield is an upgrade or

change to an existing project.

4.0

Lead Time: To ensure quality Objective for sanctioning of

loans, the Corporation has set the following lead-time for

sanction of loan.

-3-

S.No.

Sanctioning Authority

i.
ii.

By Board
By Executive Committee /
Regional
Loan
Sanction
Committee
Bill Finance Scheme
RLSC
BSC
By Branch Sanction Committee
- TL/WCTL

Iv

iv.

* Lead-time
(No. of Working
Days)
35
25

14
07
18

v.
By Branch Manager TPT. Loan

07

Lead-time is reckoned from the date of receipt of balance

Investigation fee to the date of sanction, excluding the period of
holding period due to non-submission of required particulars by
the customer.
Ref: ISO Manual
5.0

Investigation Fees Table and other fees ( Other than

Grow an Entrepreneurs scheme):
Investigation
Fees including
non refundable
Amount of loan applied for
Sl.
Registration fee
Term Loan
No
(Excluding
Service Tax)
Rs.
1. For loans upto Rs.10.00 lakhs
5000/2. For loans above Rs.10 lakhs and 10,000/upto Rs.50 lakhs
3. For loans above Rs.50 lakhs and 30,000/upto Rs.100 lakhs
5. For loans above Rs.100 lakhs and 40,000/upto Rs.200 lakhs
6. For loans above Rs.200 lakhs and 50,000/upto Rs.300 lakhs
7. For loans above Rs.300 lakhs and @ 0.20% upto a
upto Rs.2000 lakhs
maximum
of
Rs.2.00 lakh
8. For loans above Rs.2000 lakhs
5,00,000/-

-4-

9.

For Passenger Auto Rickshaw

Investigation
Fees including
non refundable
Registration fee
(Excluding
Service Tax)
Rs.
500/-

10

Open Term Loan

No fee

11

The processing fee for the subsidy

Bridge loan.

5,000/-

12

The processing fee for the TLCE 2,000/loan.

Sl.
No

Amount of loan applied for

Term Loan

Service Tax has to be collected in addition to the above at

applicable rate. Processing fee for other schemes like TWAD,
TNEB & TANSI BFS may be referred to the respective scheme
policies.
In case of shortfall in collection of Investigation /
Processing fee shall be ensured before documentation with the
concurrence of respective sanctioning authority.

5.1

Investigation Fee For Existing Prompt Clients:

50% concession in Investigation fees is available for

prompt units who have paid their instalments within the grace
period continuously for 3 years. (for loans upto Rs.10.00 lakhs
the investigation fee will be Rs.2500 for prompt units which will
be collected at the time of registration).
The Investigation fee mentioned above shall be collected in
two

stages

under

the

heads

Investigation fee as detailed below:

of

Registration

Fee

and

-5-

5.2

Registration fees (Non refundable).

1. For BSC/RLSC proposals: Rs.5,000/- for both Term Loan

and Transport Loan.
2. For EC / Board Proposals: Rs.25,000/5.3

Investigation fees.

1. For BSC/RLSC proposals: The Balance Investigation Fees

if payable shall be collected before placing the loan
proposals to BSC / RLSC.
2. For EC / Board Proposals: The Balance Investigation fees
will be collected after clearing the proposal by Head Office
Screening Committee and before placing the proposal
before EC / Board.
5.4. Processing Fee For SBL/TLCE: Processing fee for
SBL/TLCE

shall

be

collected

before

sanctioning

of

SBL/TLCE.
5.5.
a.

Refund of Investigation Fees:

The initial fees (Registration fees) paid at the time of
submission / registration of application will not be
refunded.

b.

The

balance

Investigation

fees

paid

as

second

instalment shall be considered for refund at the rate of

50% on balance fees paid if the applicant withdraws
the proposal before sanction.

c.

If the loan application is rejected by the Corporation or

in the event of applicant withdrawing the application
after the sanction of loan no reimbursement will be
considered.

d.

No refund of investigation fees will be considered for

those cases where 50% concession in payment of
investigation fee is extended.

-6-

Ref:

5.6.

1.

HO/PROJECTS/02-30/P-27/2008-09
Dated: 31/12/2008

2.

TIIC/HO/Proj-subsidy/02-18/P-34/2008-09
Dated: 23/07/2008

Upfront Fee: An upfront fee @0.50% on the loan amount

sanctioned shall be collected before documentation in respect of

all loans and it is non refundable. For OTL, Upfront fee @0.50%
on loan amount shall be collected on pro-rata basis at the time
of disbursement.
Upfront fee need not be collected for the following:
1. SBL
2. TLCE
3. Loans under Refinance Scheme for Rehabilitation
4. Loans under Composite loan scheme & scheme for SC &
for PHYSICALLY-HANDICAPPED entrepreneurs
5. Loans

up

to

Rs.2.00

Lakhs

(Including

existing

outstanding) to Micro & Small Enterprise industrial

projects(including SRTO's)
6. Soft loan assistance under NEF,MUN & SEMFEX.
7. Term loans for working capital under Single window
scheme up to Rs.2.00 lakhs

Ref:

5.7.

1. PROJ/02-69/P-152/98-99 Dated: 30-12-98

2. TIIC/HO/F&R/2004-05
Dated: 29-10-04

Risk Coverage Receipts: Risk Coverage Receipt @0.50%

on the loan amount sanctioned shall be collected on pro-rata

basis at the time of disbursement in respect of all loans except
for Open Term Loans and it is non refundable.

-7-

Risk Coverage Receipts need not be collected for the following.

1. Open Term Loan
2. SBL
3. TLCE
Ref:

1. TIIC/HO/F&R/2004-05 Dated: 29/10/04

2. HO/Pro-Subsidy/02-06/P-34A/2004-05
Dated: 17/06/04

6.0 Sanctioning Authority:

Sanction Limit (Rs in lakhs)
Nature of the loan

By
By Branch
Branch
Sanction
Manager Committee
For all Branches except
SRB
10
50
(
-50
of
&

I. Transport Loan
II. Term Loans
including take over
Bank/SIPCOT loans
EFS)
III. Term loans for existing
Customers**
(including
take over of Bank/SIPCOT
loans & EFS)
(Total
Group
exposure(II+III) should not
exceed
Open Term loan
Clean Term loan
Bill Finance TNEB (-)
Bill Finance TWAD (-)
Take over loan
Drawee Bill Scheme
Drawee Bill for Existing
customers
Generator
Loans
Irrespective
of
loan
outstanding
Working
Capital
Term
Loan
to
the
existing
assisted & non-assisted
Modern Rice Mills units,
manufacturing
and
Processing
Industries
(WCTL-MPI) & for Service
Sector Units (WCTL - SS)

By
RLSC

By
EC

100

300
300

--

75

150

500

--

100

200

900

--------

50
10
300
300
-50
75

100
50
-100
150

300
300
500

--

50

--

--

--

Where
TL
Outstanding
and
WCTL
is
within
BSC Limits..

100
-(irrespe
ctive of
loan
outstan
ding)

** Existing customers complying with the following conditions:

-8-

a. The unit is in standard category continuously for the past

three completed years.
b. The unit which have earned cash profit continuously for the
last three completed years.
c. The unit whose networth is positive.
For all other cases/loan amounts, the Board is the
sanctioning authority.

Sanction to meet the cost over-run could be considered by

the respective sanctioning authorities by not exceeding sanction
limits by 20% only after ascertaining the risk factor.

Ref: HO/DGM(PROJ)/2007-08
dt: 16/05/2007
HO/Projects/02-15/P-156/2009-10
dt: 14/08/2009
HO/Projects/02-12/P-86/2010-11 08.06.2010
HO/Projects/02-11/P-229&262 dated 15/05/10
7.0

Classification of industries as Micro, Small and

Medium
Enterprises as per the Micro, Small &
Medium Enterprises Development Act, 2006(MSMED
Act 2006)"

7.1.1 Enterprises engaged in the manufacture of production

of goods (Manufacturing Enterprises)
a)

Micro enterprises, where the investment in plant

and machinery does not exceed twenty five lakh
rupees.

b)

Small enterprises, where the investment in plant

and machinery is more than Rs 25 lakhs but does
not exceed Rs 5 Crore; or

c)

Medium enterprises, where the investment in plant

and machinery is more than Rs 5 crore but does
not exceed Rs 10 Crore.

-9-

7.1.2. Enterprises engaged in providing or rendering of

services (Service Enterprises)
a. Micro enterprises, where the investment in equipment
does not exceed ten lakh rupees.
b. Small enterprises, where the investment in equipment is
more than Rs 10 lakhs but does not exceed Rs 2 Crore; or
c. Medium enterprises, where the investment in equipment
is more than Rs 2 crore but does not exceed Rs 5 Crore.
While arriving the cost of investment in plant and
machinery, the cost of following items has to be excluded in
plant and machinery in the case of enterprises mentioned
in (7.1.1) above as under:
i)

equipments such as tools, jigs, dies, moulds and spare

parts for maintenance and the cost of consumable stores;

ii)

installation of plant and machinery;

iii)

research and development equipment and pollution

control equipment;

iv)

Power generation sets and extra transformer installed by

the undertaking as per the regulations of the State
Electricity Board;

v)

the bank charges and service charges paid to the National

Small Industries Corporation;

vi)

Procurement or installation of cables, wiring, bus bars,

electrical control panels(not those mounted on individual
machines),oil circuit breakers or miniature circuit
breakers which are necessarily be used for providing
electrical power to the plant and machinery or for safety
measures;

vii)

gas producer plants;

viii)

transportation charges (excluding of sales-tax and excise)

for indigenous machinery from the place of manufacturing
to the site of the factory;

ix)

charges paid for technical know-how for erection of plant

and machinery;

- 10 -

x)

Such storage tanks which store raw materials, finished

products only and are not linked with the manufacturing
process; and

xi)

fire fighting equipments.

2. While calculating the investment in plant and machinery, the

original price thereof, irrespective of whether the plant and
machinery are new or second hand shall be taken into account
provided that in the case of imported machinery, the following
shall be included in calculating the value, namely;
i. Import duty ( excluding miscellaneous expenses such as
transportation from the port to the site of the factory,
demurrage paid at the port);
ii. Shipping charges;
iii. Customs clearance charges and
iv. Sales tax or value added tax.
Ref: TIIC/HO-PP&RM/02-9/2008-09
8.0

MANAGEMENT:

8.1

Corporate bodies:

Date: 27/05/2008

Provision of Memorandum and Articles of Association: The

memorandum and Articles of Association shall have the
following provisions:
1. The proposed line of activity shall be mentioned in the
Main Object Clause of the memorandum of association.
2. Appointment of Nominee Directors
3. Borrowing powers
4. Registered Office may be located in any place within
Tamilnadu.
Ref: Legal/11/03/2010

Dt: 24/08/2010

- 11 -

8.2. Firms: The following documents shall be obtained.

1. The Deed of Partnership shall convey the details regarding
name of the partners, share in profit/Loss, place of
business, borrowing powers and purpose of partnership.
If minor (below 18 years) partners are involved, they are
not liable for any loss to the partnership firm and they
can not sign any documents.

2. The Firm should be registered. The firm registration

certificate in Form C shall be obtained. Wherever change
in constitution, Form A shall also be obtained. In case it
is not available immediately, same shall be obtained
before documentation.

3. If Land is owned by one of the partners of the firm, it shall

be transferred in the name of the firm by Supplementary
deed of partnership and Balance sheet shall be obtained
and verified for inclusion of land.
8.3.

Main Promoter/Key person:

If the main promoter / key person of the management is

in employment, suitable condition may be stipulated for

resignation from the services before disbursement.

9.0

Details of Loan availed from TIIC:

The details of assistance availed from TIIC for applicant

company and Associate company shall be furnished as
per the format:

- 12 -

Assistance from TIIC:

(Rs. In Lakhs)
Applicant company/concern M/s. xxxxxxxxxxxxxxxxxx
Date of
Amt.
Amt.
Prl.
Overdues
Type of Loan
Sanc.
Sancd. Disbd.
O/s.
Prl.
Int.
Assistance from TIIC:
(Rs. In Lakhs)
Associate company/concern M/s. xxxxxxxxxxxxxxxxxxxx
Amt.
Prl.
Date of
Amt.
Overdues
Type of Loan
O/s.
Sanc.
Sancd. Disbd.
Prl.
Int.

9.1. Ineligible Borrowers/Industries:

1.

2.
3.
4.
5.
6.
7.

The Borrowers who have availed any simple interest

waiver concessions towards onetime settlement from the
Corporation.
Adverse Business Intelligence Report
Adverse Bankers opinion
Adverse CIBIL report.
Units incurring cash loss continuously for the past three
financial years.
Persons / Units with whom business dealings have been
banned by the Corporation /Government.
Industries banned by the Corporation/Government.

List of banned industries by the Corporation are given in

Annexure I.
9.2.

Borrower who have settled earlier loans by availing

other than simple interest waiver:
Request for loan need not be considered for two years.

9.3.

Borrower who have settled earlier loans under ND&ND

Scheme:
1.

If the waiver /compromise amount is less than penal &

compound interest, request for additional loan need
not be considered for two years.

2.

If the waiver /compromise amount includes simple

interest request for additional loan need not be
considered.

Ref: PROJ/02-7/P-1/2000-2001

DT: 25/04/2000

- 13 -

9.4. Details of Loan availed from Banks:

Indicate the name of the Bank, Branch, Quantum of
assistance availed.

Indicate the classifications of asset code (Standard, Substandard etc.)

Security offered to the Bank and how long they are having
account.

If the concern has availed loan from more than one bank
/ financial institution, the details of financial assistance
availed shall be obtained from all the Institutions.
10.0

Details of the Proprietor /Partners / Directors:

10.1. Age Limit:

The upper age limit for the promoters in case of
proprietary concerns is 65 years and in the event of exceeding
the upper age limit, the Corporation advises the promoter to
modify the constitution of the concern.
The Managing Director is authorized to approve the
request for considering loan to the proprietary concern in case
of proprietors age is more than 65 years, on merits.
Ref: HO/PROJECTS/02-09/P-1/2007-08 Date:09/07/2007
10.2. Net worth of the promoter:
Net worth of the promoter shall be analysed to ensure
that they are capable of bringing in the promoters stake in the
project. All the assets owned by the promoters/ directors shall
be reflected in the networth statement declared by them as per
the format in the application form provided by the Corporation.

- 14 -

10.3 Business Intelligence Report (BIR):

10.3.1

For New applicants: BIR about all the promoters

shall be carried out by the respective Branch Offices where the

promoters are living.
10.3.2

For existing good clients having proven track

record/prompt borrowers fresh BIR need not be insisted.

However, BIR shall be obtained for new partners/Directors if
additional partners / Directors were inducted by the applicant
concern.
The Business Intelligence Report shall be furnished as per
the format furnished in HO Circular referred below.
Ref: Projects/02-08/P-1/2002-03
Projects/02-47/P-1/2002-03
PROJECT/02-14/P-1/2004-05
10.3.3

Dt: 15/05/2002
DT: 14/11/2002
Dt:21/07/2004

BIR in the case of Loans Rs.1.00 crore and

above:

The Branch Manager themselves should furnish BIR.

Ref: PROJ/02-87/P--I/98-99 Dated: 04/03/99
Business Intelligence report shall be obtained before placing
the proposal before the sanctioning authority.
Ref : 02-193/Project /P-61/94-95 dated 21/09/1994.

11.0

KYC norms:
KYC forms for all new applicants shall be obtained as per

the Form No. I, II & III before sanction. Obtaining of Form IV

shall be ensured before documentation.
As per the KYC and AML policy and guidelines, any of the
following documents shall be obtained for establishing customer
identification.

- 15 -

List (1) (for photo

List (2) (for residence
Sl.No
identity)
proof
1
Valid passport (where the Credit Card statement
address differs from that in
the application: to be used
for photo ID purpose only)
2
Election ID card *
Salary Certificate *
3
PAN card*
Income/Wealth
Tax
Assessment order*
4
Government/Defence
ID Electricity bill*
card
5
Driving Licence
Telephone bill*
* Latest/ recent
(Family card and birth certificate are not accepted documents
under KYC rules)
Ref: TIIC/HO/KYC/AML/2009-10 dt:22/09/2009
12.0

CIBIL Defaulters list:

12.1. Verify in the CIBIL Website whether the names of the

applicant company or its associate concerns have been
mentioned as a defaulter and / or Suit filed unit. The status
shall be verified and incorporated in the memorandum.

Applications will not be entertained if the name of the

company or promoters, partners as well as any of its associate
concerns, found in:

a.

CIBIL list of suit filed accounts of Rs.25 lakhs and above.

b.

CIBIL list of suit-filed accounts of Rs.1 Crore and above

(and those with lower defaults, wherever available)

- 16 -

13.0 Bankers opinion:

The following guidelines may be
followed for bankers opinion.
S.
Particulars
No.
1
Existing good clients assisted
by the Corporation whose
track record is good and who
are
in
Standard
Assets
category continuously for the
last 2 years.

Modified Guidelines

Bankers opinion need not be

insisted
upon subject to the
following:
a)Working results of the applicant
concern for the last 2 years
should be satisfactory.
b)Branch
Manager
shall
personally discuss with the
concerned Bank Manager on the
conduct of the account of the
applicant and record the same in
the loan proposal / memorandum
placed before the Sanctioning
authority.
Bankers opinion on Associate Bankers
opinion about the
concern: Whenever the existing Associate concern (s) need not be
customers assisted by our insisted upon.
Corporation with good track
record / working results come
for second or additional loan
assistance.
Existing
non-assisted
/ Bankers opinion need not be
migrated
good
clients
/ insisted upon subject to the
Associate Concerns.
following conditions:
a. The working results of the unit
are satisfactory and there is no
cash loss during last three
completed years of operation.
b. Net worth is positive.
c. Branch Manager / LAO/ PEO
personally discuss with the
concerned Bank Manager on the
conduct of account of applicant
unit and record the results of his
discussion in the loan proposal /
memorandum placed before the
Sanctioning authority.
New / existing non-assisted
units approaching TIIC for the
first time and including units
Bankers opinion to be obtained.
assisted by TIIC who are
associated with less than 2
years.

Ref:HO/Projects-Dev.W/07-24/P-1/2006-07 Dt:01/12/2006

- 17 -

14.1. Working Results & Financial

applicant/associate concern:

Position

of

the

If it is an existing unit, the audited Balance Sheet & Profit

& Loss Account for past three years and provisional
balance sheet and Profit/loss account for the current
financial year shall be analysed and details shall be
furnished in the format given below:
/Rs.in lakhs/
Working Results of Applicant
concern:
31.03.1 31.03.1
Year ended 31st March
31.03.09
0
1
Sales
Job work
Other income
Total Income
PBDIT (Operating Profit)
Less :Interest on TLs
Less :Tax
Cash profit / (loss)
Less : Depreciation
Net Profit / (loss)
Liabilities
Equity & Reserves
Share Capital(Paid up capital)
Partners Current A/c
Share Advance
Profit & Loss A/c ( Liability
side)
Res & Surplus
Subsidy
Deferred Tax Liability
Secured Loan:
Term Loan from TIIC-I
Term Loan from TIIC-II
Vehicle Loan from Banks
Term Loan with Bank
Working Capital Term Loan
TIIC
IFST liability
Unsecured Loans
Directors loan
Share holders deposit
Loan from Relatives

- 18 -

Current Liabilities and Provn

Sundry Creditors
Sundry Creditors for expns
CC limit with Bank
Advance from customers
Other current liabilities (Taxes
payable)
Provisions
Provision for Tax & others
Total liabilities
/Rs.in lakhs/
31.03.09 31.03.10 31.03.11
Year ended 31st March
Assets
Fixed Assets
Land
Building
Plant and Machinery
Wind mill
Electricals
ETP
Vehicles
Furniture and Fittings
Office equipments
Tools & Thalavadams
Current Assets
Investments *
Inventories/Closing Stock
Sundry Debtors
Cash in Hand and Bank
Balance
Loans, advance & deposits
Other current assets
Other Advances Recoverable
TDS receivable and income tax
refund
Misc Exp not written off
Preliminary expenses
Profit & Loss A/c-(Debit
balance or asset side)
Deferred Tax assets
Total Assets

- 19 -

Remarks:
Ratios:
As on
Net worth (Rs. In lakhs)
Operating Profit (PBDIT) to
Total income
Net profit to Total income
Current Ratio
Quick Ratio
Debt Equity Ratio
Return on Capital employed
Return on Net Worth

31.03.09 31.03.10 31.03.11

* Long term Investments such as investment in subsidiary

companies shall not be treated as current assets.
Bank Fixed deposits shall be treated as current assets.
Net worth = Capital + Reserves & Surplus (Preliminary
expenses +accumulated loss + Goodwill +
revaluation reserves)
Operating Profit = Profit before depreciation, interest & Taxes.
Current Ratio = Current Assets
-------------------Current Liabilities
Quick Assets

Current Assets Closing

Stock
Quick Ratio = -------------------- = -----------------------------Current Liabilities
Current Liabilities
Profit before interest & Tax
Return on Capital employed =
--------------------------------Capital Employed
Capital Employed =
Total assets (excluding misc. expenses not written off)
Current Liabilities
Return on Net worth =

Net Income after Tax

----------------------------- X 100
Net worth *

- 20 -

* In respect of companies, the denominator excludes preference

shares and shall contain only the equity share holding. It
measures how much return, the company can generate for its
equity shareholders.
S No
1.
2.
3.

Ratio
Current Ratio
Quick ratio
Debt Equity ratio

Norms
1.33:1.00
1.00:1.00
2.00 :1.00

14.2 Analysis of Profit and Loss A/c

(Rs. in lakhs)
31.3.08 31.03.09 31.03.10
Sales
Other income
Total Income
Raw material and consumables
Power & Fuel
Freight charges
Office Rent
Repairs & Maint. Incl. Vehicle
Interest and other expenses
Admin & op. expenses
Selling and sales promotion exp
Wages & salary
Depreciation
Total Expenses
Net Profit
Key ratios
Debt collection period
RM stock to consumption
Credit period enjoyed
Net Profit to Sales
Net Profit to Capital employed

Note:
Expenditures shall be grouped as per the format. Major expenditure
of the company shall be highlighted.

- 21 -

15.0

SCHEME & ELIGIBILITY:

15.1. The details of various schemes which are under

implementation are given in separate booklet and same may be
referred for further details.
15.2. The details of various Subsidy schemes like State Capital
Subsidy, CLCS, IDLS, Back ended interest subsidy, etc are
furnished in separate booklet and same may be referred for
further details.

15.3. Scheme Eligibility Criteria and its compliance shall be

given in a tabular form.

16.0

COST OF THE PROJECT:

The Project Cost has to be presented in the format given

below:
(Rs. in Lakhs)
Subsequently
As applied
Revised by As revised by
Items/Particulars
by the
the
TIIC
company
Company(**)
Land
Building
Plant and Machinery:
- Indigenous
- Imported
Transport & erection
Electrical
Contingencies
Other assets
Prel. &
Pre.op.expenses
Working capital
Margin
Total
(**) The column may be deleted if it is not required.

- 22 -

16.1. Land:
16.1.1.For
SIDCO/SIPCOT/DIC/Govt.Industrial
Estate
Sheds /Plots following documents shall be obtained:
a. Original allotment order
b. Copy of memorandum of undertaking
c. Original sale deed, if executed by the above authorities.
d. NOC from the above agency to mortgage the land/shed in
favour of TIIC for the loan assistance.
e. Handing over/taken over letter/boundary certificate.
f. EC from the date of allotment
16.1.2. For setting up of units in leasehold premises at
SIDCO Industrial Estate
An undertaking / indemnity shall be obtained from the
lessee of SIDCO shed to pay all dues to SIDCO for availing the
loan assistance from the Corporation, in addition to other
particulars for units set up in leasehold premises.
Ref: Legal/11/02/2006 Dt: 27/01/2006
16.1.3. Leasehold private Land / Leasehold private Land &
Building:

If the loan is for construction of building in a leasehold
land then the unit shall enter into a registered lease
agreement for 30 years with the owner of land as per the
format available with our legal department.

The

Leasehold land shall be offered as additional security.

If the land & building is taken on lease, the unit should

enter into a lease agreement as per our norms.

NOC from the Lessor shall be obtained stating that they

will not proceed against the machinery financed by TIIC
towards the arrears of rent/others if any.

- 23 -

16.1.4. Financing of Second Hand SIDCO Sheds:

The purchase of Second hand Sheds in SIDCO Industrial
Estate from third/private parties may be considered subject to
the following conditions:
1.

Shed is structurally safe and has a minimum left over life

of about 15 years.

2.

Cost of the shed is competitive / reasonable and does not

exceed the actual cost of construction.

3.

The Shed should be inspected and valued as per our

norms.

4.

The purchase of the Shed constitutes as a part of the

project / involves shifting the activities form a leasehold /
rental premises to own premises.

5.

The concern should give an undertaking to obtain

necessary approvals / clearances from Local authorities /
Regulatory Authorities/ SIDCO etc., as applicable in due
course, failing which the Corporation will have the option
to pre-close the loan.
Ref: Projects/02-23/P-244/2002-03 Dated: 11/07/02

16.1.5. Purchase of second hand industrial sheds situated

outside the Estate from private parties / purchase
through auction sale of TIIC:
Our existing clients with good track record and new
clients with high credit rating are alone eligible for financial
assistance for purchase of second hand industrial sheds from
private parties and through TIIC auction sale subject to the
following conditions:
1

Shed is structurally safe and has a minimum left over life

of about 20 years.

Located in Industrial belt ( i.e. should have approved

building plan for running the activity).

The cost of industrial sheds (factory land and building )

shall be the lowest of purchase cost / guideline value /
market value valued as per our norms.

- 24 -

The purchase of the shed constitutes as a part of the

project / involves shifting the activities from the leasehold
/ rental premises to own premises.

The concern should give an undertaking to obtain

necessary approval / clearance from the Local Authorities
/ Regulatory Authorities etc, as applicable in due course,
failing which the Corporation will have the option to preclose the loan.

The sheds have to be certified for their structural

soundness by structural engineers.

Ref: Projects/(AW)/02-23/P-244/2005-06 Dated: 22/04/05

17.0 Building:
17.1. Prevailing rates of building Rate as approved by the
Corporation:
Chennai &
Other Areas
Coimbatore
Sl.
Description
No.
LBW
FS
LBW
FS
(in Rupees per Sq.M.)
Factory Building with RCC Roof

2.

3.

i) Ground Floor

6800

8600

6400

8040

ii) First Floor

5800

7725

5450

7235

Factory Building with ACC roof

with 4.20 metre (14 feet) height
5600
(with steel trusses and purlins)
for 12 metre (40 feet) wide

6000

5200

5600

Hospital / Hotel Building

i) Ground Floor

7760

10925 7310

10245

ii) First Floor

6600

9830

9220

6210

4. Galvalume sheet roofing (*)

6400
6000
(*) For side cladding a sum of Rs.500/- per sq.mt. for the area of
the cladding may be added towards the cost of Galvalume
sheets required for side cladding.
LBW - Load Bearing Wall construction of the building
FS - Framed Structure construction of the building

- 25 -

Additional cost may be considered for the following:

For basement floor an extra 20% over the cost of
respective type of building may be provided.
In respect of factory buildings / godowns, for every
additional 1 mtr. height over 4.20 metre (14 feet) height, a
sum of Rs.230/- per sq.m. may be provided.
For Nursing Homes and Hotels:
a.
per

For colour mosaic / ceramic tile floors, Rs.120/sq.m. extra may be provided.

b.

For Marble (Macrona) type flooring Rs.670/- per

sq.m. extra may be provided.

c.

For Marble (white not less than 600 x 600 x 18

mm size), Rs.790/- per sq.m.
extra may be
provided.

The above rates include electrical fittings and internal

plumbing. Hence there is no need to provide additional cost for
the internal electrical & plumbing including hospitals and
hotels.
It may be noted that the rates now revised by the
Corporation represent only the upper limit upto which the cost
can be allowed. However, the Appraisal Officers may suggest a
lower rate while estimating the building cost on a case to case
basis depending upon the estimates, type of construction,
material of construction used, width of the building, provision
for OHT cranes etc.
If the building rate has to be increased more than the
revised building rate now proposed, the same may be
considered with specific reasoning and by getting necessary
approval from the respective sanctioning authority. For BSC
cases the same shall be referred to HO for approval.
Ref: TIIC/HO/Projects/02-10/P-116/2010-11
Dated: 03/06/2010

- 26 -

17.2. For construction of Brick Kiln Rate: with fixed chimney

at a cost not exceeding Rs 15.00 Lakhs after ensuring that the
kiln proposed to be constructed is as per the specifications of
the TNPCB and also satisfied with the estimate submitted for
the

construction

of

kiln.(Ref:

HO/Projects/02-02/

P-116/2004-05 Dt: 31/01/2005)

Also, the estimate made by the company shall also be
obtained and examined. The least among the rate estimated by
the unit and rate worked out by adopting our norms shall be
normally considered for the project cost.

Building plan approval from competent authority should

be obtained preferably before sanction and if not, same shall be
obtained before disbursement.
18.0 Legal opinion:
Prima facie title clearance for the primary/collateral
security (immovable property) is to be obtained from the Legal
Department by furnishing the following documents before
placing the proposal to the sanctioning authority.
18.1. For Leasehold Premises:
1. Lease deed
2. Rent receipt
3. Corporation/Local authority tax receipt
4. No objection certificate from the lessor

- 27 -

18.2. For collateral security/primary security

1. Original registered sale deed/ Gift deed/Will/Partition/
Exchange/Government assignments.
2. Parent documents
3. Encumbrance certificate for a minimum period of 15
years and maximum of 30 years shall be obtained
wherever necessary.
4. Kist receipt for tax
5. A register, Patta, chitta and adangal, FMB extracts
6.VAO certificate for possession, enjoyment and latest
boundaries if required for the land offered as security.

18.3 For SIDCO/SIPCOT/DIC/GOVT.INDUSTRIAL ESTATE

SHEDS/PLOTS.
1.

Original allotment order

2.

Copy of memorandum of undertaking

3.

Original sale deed, if executed by the above authorities.

4.

NOC from the above agency to mortgage the land/shed

in favour of TIIC for the loan assistance.

5.

Handing over/taken over letter/boundary certificate.

6.

EC from the date of allotment.

19.0 Legal status on the Factory Land & Building:

19.1. Existing charges on the fixed assets of the unit with
TIIC/Bank shall be clearly indicated.
19.2. Existing Assisted and Non assisted units functioning
from a leasehold premises:
"No lien" letter is not required irrespective of whether
they have credit / term loan facility from the Banker because
each institution will have their separate primary and collateral
security.

- 28 -

19.3. Existing
premises:

Assisted

units

functioning

from

own

19.3.1. If the fixed assets namely factory land and building are
under charge to TIIC and the Banker is not having second
charge over the fixed assets, 'NO Lien" letter is not required.
19.3.2. If the second charge has been ceded to the Bankers in
the prescribed format, no lien letter is not required because in
the letter ceding second charge, there exists a specific condition
that TIIC will continue to have first charge on fixed assets
whenever the Corporation considers subsequent loans.
19.3.3. If the Banker is having first charge over the fixed assets
namely factory land, building and plant and machinery of the
applicant unit then a letter from the banker indicating that they
will not have any lien on the proposed fixed assets to be
financed by TIIC has to be obtained.
19.3.4. In all cases where "No lien" is not obtained from the
Banker, the Banker has to be informed of our loan and charge
after the first disbursement is made.
Ref: Projects/(AW)/02-23/P-244/2005-06 Dt: 22/04/05
20.0

Pre Sanction Inspection:

PEO who is evaluating the proposal shall inspect the

proposed factory location and furnish a report on the
suitability of the site/ building, infrastructure facilities,
availability of Raw material, marketability, etc. as per the
prescribed Pre Sanction Inspection format.

The observations made in pre sanction Inspection report
shall be incorporated in the appraisal memorandum.

Pre-sanction Inspection report shall be obtained before
placing the proposal before the sanctioning authority.
Ref: Projects/02-47/P-1/2002-03
DT: 14/11/2002.
Ref : 02-193/Project /P-61/94-95 dated 21/09/1994.

- 29 -

21.0

Plant & Machinery:

21.1. Import of New Machinery:

21.1.1. Estimation of Cost of Imported Machinery:
FOB Price: In case the exporter of machinery quotes FOB cost
( Free on Board), then the following cost shall be included in the
machinery cost.
1. Latest exchange rate shall be considered for computation
of actual cost of machinery
2. Cost towards Insurance, Fright and handling charges
upto the shipment.
3. Clearing & forwarding charges on the cost of FOB &
Insurance and Fright.
4. Import duty.
CIF Price: In case the exporter of machinery quotes CIF cost
(Cost including Insurance and fright), then the following cost
shall be included in the machinery cost.
1. Latest exchange rate shall be considered for computation
of actual cost of machinery
2. Clearing & forwarding charges.
3. Import duty.
21.1.2. Import of Machinery under EPCGC Licence:
1.Availability
of
EPCGC
licence
before
disbursement/issue of Commitment letter.
2. Compliance about the EPCGC shall be mentioned in
the appraisal memorandum and suitable condition has to
be stipulated to ensure compliance in future.
21.1.3. Import of machinery directly from foreign supplier
by opening letter of credit:
The machinery shall be imported directly from original
foreign manufacturer/supplier by opening letter of credit in
favour of the foreign supplier.

- 30 -

21.1.4. Import of machinery directly from foreign supplier

on Document against payment basis(DP):
Pre-requisite for according approval for DP:
a.

The borrower should be an existing unit with good track

record/satisfactory working results/satisfactory banker's
opinion.

b.

The borrower unit or any of its associated units (in case

the borrower unit is a new unit or not assisted by TIIC)
should have been an assisted unit of TIIC and the track
record of that unit with TIIC should be satisfactory.

c.

The foreign supplier should be reputed/with good

credentials. For others, the Corporation should have had
some dealings with the foreign supplier in the past, in
other words, the foreign supplier should not be 'new'
supplier to TIIC but have already supplied machinery to a
few units in the past without any problem/complaints.

d.

The machinery to be imported should be a new machinery

only and not secondhand machinery.

e.

Collateral security should be available/offered by the

borrower for the TIIC loan.

2).

To be ensured before release of payments on DP basis:

a.

The copy of documents to be received from Bank shall be

verified with the Proforma Invoice/machinery list as
approved in sanction order.

b.

A certificate from the Steamer agent to confirm arrival of

goods at the port should be obtained.

3).

To be ensured after release of payments:-

a.

Import documents like Bill of Lading, Bill of Entry,

Invoice, Certificate of Origin, Transit Insurance, Packing
list, etc.,. to be obtained and Branch should verify the
specification of machinery, price etc.,.

b.

The machinery to be imported should be physically

inspected/Verified by the Branch at the earliest
opportunity.

c.

The above (a) and (b) should be ensured before drawal of

last 10% of the loan amount.

- 31 -

Ref: PROJ/02-42/P-15/2000-01

DT:10/10/2000

21.1.5. Purchase of New imported machinery from

authorised local dealer / accredited agent of the foreign
manufacturer / foreign supplier / Indian Branch or
subsidiary of the foreign manufacturer.
The genuineness of the status is obtained in writing from
the foreign manufacturer. In such a case documents like Bill of
lading, Bill of Entry, Certificate of Origin and original invoice
from the foreign manufacturer / supplier etc need not be
insisted upon.
Ref: Projects/(AW)/02-23/P-244/2005-06 Dt: 22/04/05
21.1.6. Purchase of Second hand machinery:
Eligible Equipments:

Those made indigenously, manufactured by standard
companies and used locally.

Those imported new from foreign manufacturers and
used locally.

Second hand machinery, imported directly.
General Covenants:

The seller must be, to the extent possible, a reputed
industry / vendor.

The original manufacturer, particularly for those made
indigenously, should carry good brand equity.

A certificate should be obtained on the second hand
equipment,

quality

of

performance,

efficiency

standards, maintenance, residual life, price, etc. This

should be from TIICs competent personnel or an
empanelled expert or an outside consultant (Charted
Engineers) / firm, where found necessary.

- 32 -

The general approach for valuation is outlined at the

Annexure II of the HO circular. This should be followed
satisfactorily.

The residual life should be at least ten years.

Price to be financed under the loan may include that to
be paid, cost of packing, freight, insurance, repairs,
erection at site, exigencies, etc.
For further details of policy/norms regarding purchase of
second hand imported machinery, SAME may be referred to the
circular cited under reference.
Ref:TIIC/HO/Projects/02-20/P-273/2008-09
Dt:12/08/2008
21.1.7. Purchase of Second hand imported / indigenous
machinery from local dealers and from the units already
using them:
1]

To ascertain the present value and condition of the

second hand imported machinery purchased locally, the
machinery shall be inspected and valued by the Chartered
Engineer from our list of panel valuers.

The Chartered

Engineer shall furnish the report covering the following:

a]
b]
c]
d]
e]
f]

Year of manufacture and name of the

manufacturer
Country of origin
Condition of the machinery
Residual life of the machinery
Value of the machinery as assessed by panel
engineer.
Capacity of the machinery

The foreign Chartered Engineers Certificate will also be

taken into account while arriving at the value by the
panel engineer.
2]

The units purchasing such machinery shall furnish the

reasons and advantage of purchasing such second hand
Imported machinery from local dealers and units.

- 33 -

3]

The original machinery manufacturer shall be a standard

machinery manufacturer (should be a well known
manufacturer who has standing in the market).

4]

Comparison to the present cost of the new machinery

shall be made for ascertaining the reasonableness of the
value of the second hand machinery.

5]

Collateral security to the extent of 100% of the loan

component shall be obtained.

6]

If the transaction is within the associate or group

concerns then such proposals shall not be entertained.

7]

The residual life of the machinery shall be a minimum of

10 years.

8]

The dealer or vendor shall give a declaration that no

charge has been created in favour of any institution.

9)

Date of import of machinery to India shall be obtained

from the dealer or vendor.

10)

Second hand machinery of Chinese origin shall

approved by Head Office Screening Committee.

be

For further details of policy/norms regarding purchase of

second hand imported / indigenous machinery, the Scheme for
funding of second hand machinery may be referred.
Ref: HO/Projects/02- 09/P-273/2010-11 Dt: 27/05/10
21.2. Indigenous

Machinery:

21.2.1.STANDARD/REPUTED Manufacturer.
a). No need for inspection of supplier, obtaining of competitive
quotations, Retention / Valuation Clause.
b) Authorised agents/dealers may be considered for supply of
machinery.
b). Direct payment can be made after applicant's request &
confirming readiness of M/C from the supplier.

- 34 -

21.2.2. APPROVED MANUFACTURERS.

i) Atleast one competitive quotations shall be obtained.

ii) Payment to be made only on receipt of the documents
through Bank or on receipt of machinery.
iii) The Machinery manufacturer only be considered but
not any agents/dealers.
21.2.3. OTHERS:

i). Inspections of the machinery Manufacturer's premises

shall be carried out to ascertain their manufacturing
capacity.
ii).Competitive quotation from one more supplier to be
obtained.
iii).Payment shall be released only after inspection and
valuation.

21.2.4. OWN FABRICATION

i.

One self estimation and one quotation including chosen

supplier are to be obtained.

ii.

Payment shall be released only after inspection and

valuation.

- 35 -

21.3. Competitive quotations:

1

Existing
TIIC for
years and
classified
category.

customers of
more than 3
loan account is
in Standard

Selection of machinery suppliers is

according to their choice. However,
they have to submit one quotation
from whom machinery is being
purchased (including self-fabricated
items).
However, payment for
fabricated items will be made after
inspection and valuation.
Other customers (who a. If the machinery is proposed to
have been with TIIC for
be purchased from standard
less than 3 years) and
machinery suppliers
one
quotation from whom machinery
new applicant.
is being purchased is required.
b. If the machinery is proposed to
be purchased from approved
machinery
suppliers,
two
quotations
including
chosen
supplier are required. Payment
to be made on receipt of
documents through Bank or on
receipt of machinery.
c. If the machinery is proposed to
be purchased from others, two
quotations
including
chosen
supplier are to be obtained. The
payment will be effected only
after inspection and valuation.

d. If it is fabrication, two quotations

including chosen supplier are to
be furnished. Disbursement will
be made after inspection and
valuation.
Ref: 1. PROJ/02-46/P-90/92-93
Dt: 02-07-92
2.HO/Projects-Dev.W/07-24/P-1/2006-07 Dt:01/12/2006

- 36 -

22.0 Body building rates for Lorry, Passenger Bus, Mini

Bus and Van.
(Rs in lakhs)
Body Building Rate
(Taxes
S.No
extra)
1.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)

Passenger Bus
Tata City 45 Seater
Tata Marcopolo 45 seater
Tata City Moffusil 54 Seater
Tata City Semi Luxury 54 Seater
Leyland 45 Seater
Leyland Semi- Luxury 57 Seater
Leyland All India Coach 35 Seater
Hi-Tech Body Building 59 Seater

(i)

Air Condition Coach ( Without Aircondition)

Mini Bus 25 Seater Capacity

Van Body Building for passenger
Van (13 Seater / Maxi Cab 40)

4.30
11.00
4.75
5.40
4.30
5.50
8.50
6.00
13.00
3.00

3
4
(a)
(b)
(i)
(ii)
(iii)
(iv)
(v)
V
(i)
(ii)

Lorries
Cabin Building Only
Cabin and Body Building
Tata 407 (Open Type)
Tata LPT (Half Body)
Tata Cabin with Full Body
ALCO Comet-1611 (Six Wheels)
ALCO Taurus (Ten Wheels)
Oil Tanker
Cabin & 12 KL MS Oil Tanker
Cabin & 20 KL MS Oil Tanker

2.50

0.80

1.00
1.80
2.25
2.00
2.25
2.10
2.80

However, the Branches may accept the actual rates

quoted by Standard/reputed body builders like TVS, LGB, ABT,
Annamalais Engineering (P) Ltd., Volvo, Azad and Prakash,
Bangalore without any restriction. In respect of others, the cost
may be restricted as indicated in this circular.
Ref: Projects/02-32/P-06/2009-2010

Dt 22/01/2010

- 37 -

23.0 Expenditure incurred prior to the date of application

23.1. Land:
The cost of land may be considered, if the land
purchased within 18 months prior to the date of submission of
loan application to TIIC, towards the project cost, security and
disbursement purpose.
23.2. Building:
If the unit has completed the construction of building
within 18 months prior to the date of submission of loan
application to TIIC, the cost will be considered for the project
cost and towards security and loan disbursement purpose.
However, the value of building and disbursement towards
building will be considered at the rate prevailing at the time of
construction of building. Further, it shall be ensured that
building plan approval has been obtained with in two years
prior to the date of application.
Reimbursement for building shall be considered only for
making advance payment to the machinery supplier/margin
money to bank for working capital and not reimbursed to the
promoters.
23.3. Machinery purchased prior to six months and up to
eighteen months, prior to the date of filing of application:
i) Any advance paid by the applicant to the machinery supplier
within 18 months from the date of submission of loan
application to TIIC can be considered for the project cost,
security and loan disbursement purpose.
ii) If the machinery has been received before the date of
submission of loan application to TIIC and the payment to the
supplier has not been made fully, then the same may be
considered for the project cost, security and loan disbursement
purpose.
iii) If the machinery has been purchased within 18 months from
the date of submission of loan application to TIIC, then the
same may be considered in the project cost and treated for
promoters contribution/capital purpose only. It will not be
considered for working out advance margin on security or
disbursement purpose. Disbursement will be considered for the
machinery proposed to be acquired only. Minimum-security
margin of 15% shall be stipulated for the assets proposed to be
financed. The branch shall get satisfied about the mode of
payment by DD/Cheque.
Ref: PROJ/02-76/P-1/1999-2000 DT 20/03/2000

- 38 -

23.4. Machinery purchased within six months prior to the

date of filing of application
The cost of machinery purchased and fully paid for within
six months prior to the date of filing of application may be
included in the project cost and consider the same for security as
well as disbursement purpose in respect of existing assisted
units who are in the standard category continuously for the
last three years and to non-assisted units, as well, whose
earlier track record is good subject to the following
conditions.
1.

All electronic goods including computer hardware and

software items / highly depreciating assets / self
fabricated items / spares and consumable tools /
accessories will not be considered.
However, if the
machinery is operated by computer hardware then cost of
hardware and software in such cases can be included in
the project cost and considered for disbursement
purpose.

2.

Loan to the extent of 75% of asset value will be

considered and 25% will be treated as promoters
contribution towards the assets (However, the overall
DER has to be within 2 : 1).

3.

The machinery being considered shall be free of any

charge.

4.

Machinery purchased out of cash payments will not be

considered.

5.

Proposed loan shall be utilized for creation of new fixed

assets or for working capital purposes and not for any
other purpose.

6.

The Branch shall ensure that the machinery considered

are purchased within 6 months prior to the date of filing
of applications and shall get satisfied about the payment
by cheque / DD (paid in not more than two or three
installments) and full settlement to the machinery
supplier etc., for the machinery items being considered as
per the existing norms for the term loan disbursement.

- 39 -

7.

The machinery being considered should have been

purchased from a reputed / standard / approved
suppliers of the Corporation or a manufacturer whose
credentials / standing have been verified by the
Corporation. However, no dealers (except in case of
dealers for standard / reputed suppliers) shall be
entertained.

8.

Overall cost of machinery being considered per unit /

borrower shall not be less than Rs.10.00 lakhs and the
cost of each machinery shall not be less than Rs.1.00
lakh.

9.

Such machinery shall be valued by our Panel Valuer and

Branch Officials before disbursement as per norms of the
Corporation.

Ref:HO/Projects/02-12/P-1/2006-07 dt: 27/07/2006

24.0

Turnkey Projects:

For certain type of industries, the promoters may not

have the process details and specification of machinery to be
installed. The process may also be a complicated one and
various process parameters may not be freely available to them.
Under such circumstances the promoters has to necessarily get
consultation from an expert in this field (Specially for Large
Chemical / Steel Industries, etc.).
The consultants will
normally workout the specification of the machinery, process
details etc. The machinery will be manufactured by a fabricator
/ Equipment manufacturer according to the specifications given
by the consultant.
While considering such proposals, the consultants ability
to give consultancy for the proposed project should be verified
by getting the feedback report from those units for which earlier
consultancy was given. His Bio-Data should be obtained and
analyzed to assess his capability.
Similarly the machinery
suppliers / fabricators/manufacturers capacity to manufacture
should be verified. The manufacturing premises should be
inspected by our Officials and it should be ensured that they
have required infrastructure facilities.

- 40 -

The unit, Consultant and the machinery supplier will be

advised to enter into a Tripartiate agreement and it shall be
scrutinized by the Appraisal Officer whether it is drafted in a
correct manner. The Appraisal officer should check for the
following in consultation with the Legal Department regarding
enforcement of penalty clauses etc. as detailed below :
1. The capacity of the plant should be clearly mentioned.
2. The Terms of payment should be specified.
3. Normally we permit the supply of plant & machinery in
stages.
4. Disbursement will be made only after valuation by our
Penal Valuer and inspection by our Officials.
5. Certain percentage viz. 10 to 25% will be retained and
released only after the successful commissioning of the
plant and after the plant attaining the capacity for a
continuous period of 1 to 3 months, mentioned in the
agreement.
6. A penalty clause has to be stipulated for rectifying the
defects by the machinery supplier / manufacturer on
his own cost.
7. Specific payment clause should be stipulated towards
the consultant fees.
8. The last 25% will be released only after successful
commissioning and after achieving the rated output &
quality.
9. Penalty clause should be stipulated for the consultant
for rectification of any defects.
10.The specification for the quality of the product should
also be mentioned.
11.Arbitration clause shall be stipulated.
12.The final Tripartiate agreement should be approved by
the Legal Department before the disbursement is made to
the supplier:
25.0 Transport & Erection:
The estimated expenditure to be incurred to bring the
machinery to the factory and the cost of erection estimated shall
be furnished.
26.0 Electrical:
Indicate whether it comes under LT/HT category. If HT
Category Power connection is required, indicate the KVA load
MD and the details of the Transformers to be installed. The cost
estimated for the electrical shall be included under this head.

- 41 -

27.0

Technical Know how:

Technical know how for the project if needed be included

in the project cost as well as security purpose. Necessary
agreement for Technical Know how has to be entered and
salient feature of the same shall be incorporated in the
memorandum. Among other clause, agreement shall include the
payment of fee, steps for achieving the desired quality and rated
output, guarantee and penalty clause for non achievement of
the desired result.
28.0

Contingencies:

The provision shall be made towards contingency for fixed

assets envisaged in the scheme and same shall be indicated in
the note.
29.0

Other Assets:

The amount required for other assets i.e. for the purchase
of Office Equipments, Furniture, Fittings etc. shall be furnished.
30.0

Preliminary & Pre-operative expenses:

The quantum of Preliminary & Pre-operative expenses

required under various heads shall be furnished as per the
format:
Investigation Fee
Upfront & RCF
Interest during implementation (26 months)*
TNEB Department deposit
Firm Registration / Company
Formation expenses
Other expenses(Pl specify)
Total
* depends upon the implementation period of the project.
31.0

Working capital Margin/Requirement:

The assessment of working capital margin/requirement

will normally be based on II year of operation for the new
units and I year for the existing units going in for
expansion (i.e. after the unit stabilizes its operation). It
shall be estimated and included in the project
cost/venture outlay.

- 42 -

The requirement of raw material, working expenses, stock

of finished goods etc. shall be estimated based on the
working capital cycle of the industry.
(Rs.in lakhs)
Sl.No.
1.
2.
3.
4.

Items
Raw materials
Working Expenses
Finished goods
Sale bills
Working capital required
Less : Eligible Bank Loan

Period

Working capital margin

Say Rs.

Amount

.00 lakhs

In case of existing units going for expansion, Profit & loss

account analysis for the last three years shall be done and
working capital period shall be arrived based on the past
records. Additional provision for WCM shall be provided
depending on the availability of excess of Current assets over
current liabilities in the operations.

32.0

Means of Finance:

The Means of Finance proposed shall be furnished in the

format given below:
(Rs. in lakhs)
As applied by Subsequently As revised
the company revised by the by TIIC
company
Capital
Internal Generation *
Unsecured loan *
Term Loan
SBL / TLCE
Total
* only for Corporate bodies and it shall not exceed the
estimated cash profit estimated current commitment

- 43 -

CAPITAL:

Capital for Limited company should be in the form of
share capital for new units.

If unsecured loan is permitted, then it should not be more
than 50% of the equity (capital). Unsecured Loan should
not carry interest and it should not be withdrawn during
the pendency of the loan.

For existing profit making units(Corporate bodies), the
capital may be brought in by way of internal generation.

For Proprietary & Partnership concerns, the capital
stipulated shall be only in the form of capital
contribution.

Unsecured loan is not permitted
proprietary/ partnership concern.

as

capital

in

In respect of limited companies, authorized share capital

must be sufficient to accommodate the proposed share
capital. Otherwise, necessary condition shall be stipulated
to ensure the same.

Share application money shall not be treated as capital.
In case it is treated as capital necessary condition shall be
stipulated for conversion of same as capital before
disbursement.
33.0 Subsidy Eligibility:
If Subsidy Bridge Loan is considered, then eligibility and
compliance for subsidy shall be furnished in tabular form.
The list of machinery/generator eligible for subsidy and
its amount (including its contingency provision), %of subsidy
considered etc. shall be furnished wherever necessary. For
CLCS eligibility, the SL. NO. as given in the booklet shall also
be furnished.

- 44 -

34.0

Debt - Equity parameters:

Debt

Equity

ADD:
1. TIIC-Term loan (Existing &
Proposed) *
2. Term loan from Banks and
other institutions (Both existing
and proposed if any)
3.Unsecured loan
(Other than Directors/Interest
bearing)
4. IFST loan

ADD:
1. Capital (Paid up capital /
Proprietors / Partners capital)
2. Current account **
(Proprietor/partner)

5. HP loan from TIIC / Others

6. SBL/TLCE
7. Vehicle loan
8. Any other long term loan

3.Reserves and surplus

4.Unsecured
loan
from
Directors(Quasi-equity)
5.Soft Loan TIIC
6.Profit and loss account (Profit
i.e. credit balance)
LESS: (DEDUCT)
1.Profit & Loss A/c (Loss is any,
i.e. Debit balance)
2.Current A/c (Debit Balance)
3. Goodwill
4.Pre-operative
expenses
not
written off.

* In case of partly drawn cases, sanctioned loan amount shall

be taken as Loan amount instead of actual disbursed amount.
**
1. For loans upto 10.00 lakhs the DER may be upto:
3.00 : 1.00
2. For loans above 10.00 lakhs DER should be upto:
2.00 : 1.00
3. For loans under Micro / Small Enterprises Funding
Scheme, the DER shall be
New Units
Existing Units Overall DER must be below
Ref: HO/Projects/02-16/P-126/2007-08

: 4.00 : 1.00
: 3.00 : 1.00
Dt: 11/09/ 2007

4. Debt Equity Ratio norms under SRTOs Scheme was

dispensed with as liberalised by SIDBI.
Ref: PROJECTS/02-90/P-6/98-99 DT.30.3.99

- 45 -

35.0

Unsecured Loan:

a) If unsecured loan is included in the means of finance,

(Maximum limit is 50% of the total paid up capital/equity in
case of Corporate Bodies) it shall be considered as quasi-equity
subject to the following conditions:i.

The unit shall give an undertaking that it will not repay

the unsecured loan during the pendency of term loan.

ii.

The unsecured loan will not carry any interest till the
project is commissioned and interest if any is paid (after
commissioning) then it will be less than the rate of
interest payable on term loan subject to no over dues in
the loan account.

b) Unsecured loan should not be considered as part of equity for

the purpose of arriving Debt Equity Ratio (DER) in the case of
proprietary and partnership concerns.
Ref: PROJ/02-186/P-28/94-95

DT 10-06-94

36.0 Promoters Contribution:

The Promoters contribution norms for various schemes are
given under and for further reference, relevant schemes may be
referred.

S.No

1
2
3
4
5

Name of the Scheme

Schemes
Clean term loan scheme
Commercial complex
Computer training center
Doctors Growth Scheme
Equipment Finance Scheme
Funding of second hand machinery
Existing TIICs Clients-OTL
Existing TIICs Clients-General
Existing unit new to TIIC
New unit(Green Field)

Promoters
Contribution
in %
30
33.33
33.33
25
15
15
25
33.33
40

- 46 -

S.No

Name of the Scheme

Promoters
Contribution
in %

General schemes
Existing units:
New units:

25
33.33
15
33.33

Existing units:
10
New units:
11 Information technology projects
Marriage hall/community hall/convention
12 center
Micro/Small Enterprises Funding Scheme
Existing units:
13
New units:
14 Open term loan
Single window scheme
Existing units:
15
New units:
Small Hospital scheme
Existing units:
16
New units:
17 Transport loan scheme
17.1 Loan upto Rs 10.00 lakhs
17.2 Loan More than Rs 10.00 lakhs
17.3 Auto / Share Auto / Minidor
18 Working capital term loan for rice mills
Working Capital Term Loan for
Manufacturing and Processing Industries
19 (WCTL-MPI) except Rice Mills
Working Capital Term Loan for Service
20 Sector Units (WCTL - SS)
Wind power projects
Existing units:
21
New units:
Wind Mill second hand from manufacturer
Assisted Unit-TIIC
Non assisted unit
22
Industry Based:
23 EPBAX System
24 Dish Antenna & Cable TV Network

25
33.33
35

7
8 Generator loan scheme
9 Godown scheme
Hotel scheme

33.33
25
20
15
25
33.33
25
33.33
20
25
15
25

25
35
15
33.33

25
30
33.33
40

- 47 -

S.No

25
26
27
28
29
30

Name of the Scheme

RIG
JCB
Excavator
Harvestor
Gym/beauty parlour
Mineral water projects
Blue metal units
New Units:
Existing Units:

31

Promoters
Contribution
in %
40
25
35
35
50
40
33.33
25

37.0. Security and Margin on Security:

It is the asset for which the Term Loan is being extended.

The details of security which are to be financed shall be
given in the format as detailed below:
(Rs.in lakhs)
Particulars/Items
Amount
Land
Building
Plant and machinery Imported
Indigenous
Transport & erection
Electrical
Contingencies
Int. during Implementation period
Total
37.1.Margin on Security:

% Security margin = Value of Security Term Loan

------------------------------------X100 %
Value of Security
A minimum security margin of 15% shall be ensured.
37.2. Advance Margin

% Advance margin = Term Loan

-------------------- X 100 %
Total Security (Para 37)

It is the ratio between term loan and total security given
in %.

It is used to calculate the amount to the disbursed for the
assets created by the unit.

- 48 -

38.0 Rate of Interest:

38.1. Interest rate reset clause: Interest rate will be decided
and declared at the beginning of every financial year in the
month of April and new rate will be effective for the demand to
be raised from 1st of April every year.
38.2. Current Interest rate for different Schemes ( w.e.f.
01.04.2011 valid upto 31.03.2012):
Micro Small Medium Enterprises(Manufacturing)
1.

Loans upto Rs.2.00 lakhs including Transport 13.50 %

loan

2.

Loans above Rs.2.00 lakhs

a.

SMERA RATING & from other agencies such as

CRISIL
13.50 %
Highest

b.

High

13.75 %

Other Ratings than the above

14.25 %

3.

Existing assisted clients continuously prompt*

for 3 years including Existing Transport Loan at 13.50 %
the time of sanction

4.

New MSME & Transport sector

5.

Other Special Scheme :

a.

Open Term Loan (OTL)

14.25 %

Continuously Prompt* for 3 years at the time of 13.50 %

sanction
Continuously Standard** for 3 years at the time 14.00 %
of sanction
b.

Drawee Bill Scheme / Clean Term Loan scheme

c.

Working Capital Term Loan under modern rice

mill, manufacturing processing industries &
single window scheme
14.50 %

d.

Micro/
Small
Scheme(MSEF)

Enterprises

14.50 %

Funding 14.50 %

* If the principal and interest demand is paid within the grace

period continuously for 36 months or 12 quarterly instalments
the unit is classified as Prompt unit.

- 49 -

** If the unit pays the interest and principal demand within 90

days continuously for 36 months or 12 quarterly instalments
then the unit is eligible for the concessional rate indicated in
Standard category.
NON-MSME
6.

PROPOSED
New clients at
the
time
of
sanction

a.

Non-MSME Term Loan

15.00%

b.

Non-MSME Term Loan

Existing non-assisted units with good track
record for 3 completed years.
14.50%

c.

Term Loan to service sector viz., shopping

complex,
community
hall,
Kalyana
Mandapam etc.
15.00%

7a.

Loans to Hospitals, Doctors and Nursing

Home, purchase of land and construction of 15.00%
building

b.

For purchase of medical equipments

14.00%

8.

WIND MILLS

13.75%

9.

BILL FINANCE SCHEME

15.00%

10.

Term Loan for replacement of high cost loan 1% over the

Corporation's
usual
term
loan
(or)
15.00%
whichever
is
higher
a) Interest is payable on monthly / quarterly rest.
b) Other dues will carry an interest rate that is applicable to
that of Term Loan.
c) Subsidy Bridge Loan (SBL) and Term Loan against Credit
Linked Capital subsidy will carry an interest rate that is
applicable to Term Loan.
d) In the event of default penal interest of 2.50% p.a. will be
charged for the defaulted amount for the defaulted period.
e) Beyond 120 days additional interest of 2.50% p.a. will be
charged under Bill Finance Scheme.
Ref: TIIC:HO:F&R:2011-12

Dt:08/04/2011

- 50 -

39.0

Moratorium/Holiday Period:

The moratorium period will depend on the project.

For Windmill it shall not exceed 3-6 months period.

For projects involving construction of building, upto 1224 months may be given.

If machinery is only purchased then it will normally be
6-12 months depending on the size of the unit, schedule
of implementation etc.
40.0

Repayment Schedule:

It will be on monthly basis.

It will range between 3 years to 10 years including
moratorium depending upon the size, nature of project.

For smaller loans and where the assets are prone to rapid
obsolescence the repayment shall be fixed for 3 to 5
years.

For specific schemes the repayment schedule will be as
per the provision of the scheme.
S.No

Name of the Scheme

Repayment
period in
months/years
including
holiday period
36 months

Clean term loan scheme

Commercial complex

Computer training centre

Outright sale
years
Lease: 8 years
36 Months

Doctors Growth Scheme

60 Months

Equipment Finance Scheme

60 Months

6
7

Funding
of
second
machinery
Generator loan scheme

8
9
10

Godown scheme
Hotel scheme
Information technology projects

hand 60 Months
60 Months
9 Years
9 Years
36 60 Months

Holiday
period

3
Months
4 2 years

3
Months
6
Months
3-12
Months
6
Months
6
Months
2 Years
2 Years
3
months

- 51 -

S.No

11
12
13

14

15
16

17
18

19
20

Name of the Scheme

Repayment
period in
months/years
including
holiday period
Marriage
hall/community 9 Years
hall/convention center
MSEF scheme
72 Months

Holiday
period

2 Years

6-24
Months
Open term loan
60 Months (The Upto 12
instalment
months
amount will be
fixed at the end of
the financial year
based on the loan
amount availed,
by
Branch
Manager.)
Single window scheme
TL: 60 to 84 6 to 24
months
Months
WCTL: 60 Months
Small Hospital scheme
TL: 60 to 84 6 to 24
months
Months
same as stipulated No
Take over of loan scheme
by the applicants holiday
present banker - period
Normally,
the
amortization period
will be between 5
7 years.
Transport loan scheme
60 Months
4
Months
Working capital term loans for 36 Months
4 ( for
all schemes
first
time
only)
Wind power projects New
TL: 60 to 84 6 to 12
months
Months
Wind Mill second hand from 60-72 Months
3
manufacturer
Months

- 52 -

41.0 Licence/Approvals:
41.1. Entrepreneurs Memorandum for MSME:
Entrepreneurs Memorandum Part I shall be obtained
incorporating the Factory location, Product to be manufactured,
classification of industry (Micro/ Small/Medium) and type of
management, etc before sanction of loan. Wherever, there is
deviation in any of the above, necessary condition shall be
stipulated to ensure correctness of data before disbursement.
Entrepreneurs Memorandum Part II shall be obtained
incorporating the date of production after commercial
production.
41.2. For other than MSME(Large Manufacture Enterprises):
Secretariat for Industrial Approval (SIA), New Delhi shall
be obtained.
41.3. Power Intensive Industry:
Feasibility report shall be ensured before appraisal and if
not possible same shall be ensured before disbursement.
41.4. Water:
If water requirement is heavy, availability of water shall be
ensured and same shall be discussed in the appraisal note.
41.5. Approval from local authorities:
License from local authorities to operate the industry
shall be obtained.
41.6. TNPCB Consent
For Orange categories under Orange I category, TNPCB
clearance shall be obtained before drawal of last 20% of the
Term

loan.

Alternatively,

if

the

unit

install/commission

Pollution control Equipment /Effluent Treatment Plants as

prescribed by the Pollution Control Board, then balance 20% of
the

loan

may

be

disbursed

clearance/approval from TNPCB.

without

insisting

on

- 53 -

For Orange categories under Orange II category, no

retention clause for disbursement of term loan need be
stipulated. However, a condition shall be stipulated in the terms
& conditions of sanction, that the unit should apply for TNPCB
consent/clearance and obtain the same in due course so as to
avoid any penal action by TNPCB, but without making it a pre
condition for disbursement.

For all industries in Orange I and II categories set up in

SIDCO/SIPCOT industrial estates, no retention clause for
disbursement of our loan need be stipulated.

However, these

units also should apply and obtain clearance from TNPCB in

due course, so as to avoid any action by TNPCB.

For red category industries, the existing practice of

stipulating PCB clearance being obtained before drawal of loan
shall continue to be followed.

List of Green, Orange I, Orange II and Red category

industries are give in ANNEXURE II.
Ref: PROJECTS/02-33/P-171/98-99
PROJECT/02-35/P-171/98-99

DT 01/09/98
DT 16/09/98

41.6. Any other industry specific approvals shall be obtained,

wherever necessary.

- 54 -

42.0 Collateral Security Norms:

Broad guidelines of norms for different schemes are given
under and for further details the relevant schemes may be
referred to.

S.No
1

Type of Proposal
General scheme: Industrial
unit for term loan up to Rs.3
crores for construction of
building and purchase of
machinery.
a)
Whenever
primary
security is available in the
form of land and building
and the value of primary
land and building is more
than 50% of the loan
amount.
b) If the primary security
viz.land and building value
is between 25% to 50% of
loan amount.
c) If the primary security viz.
land and building value is
less than 25% of loan
amount.
General
scheme

Industrial units and all

others cases for TL above
Rs.3 crores.

Collateral Security
norms
If the risk perception is
Low
High

No collateral

25%
of
loan
amount

25%
50%

35%
50%

To be decided on a case to
case basis by the board
depending on the risk
perception of the project,
net worth of the company
as compared to the loan
amount, background of the
promoters
and
track
record of the applicant
company/associate
concern.

- 55 -

S.No
3.

Collateral Security
norms
For purchase of machinery I. Standard category for 3
to be erected in leasehold completed financial years
premises for both existing :
and new units.
15% of the loan amount if
the proposed loan is
equivalent to the original
loan disbursed.
Type of Proposal

25% of the loan amount if

the proposed loan is more
than the original loan
availed upto3 times of the
original loan.

More than 3 times the

original loan sanction 50%.
II. Units which are not
Standard :

5.

6.

50% of the loan amount

Purchase of machinery to be If the risk perception is
installed in own land and Low
High
building which is not offered 25%
50%
as security.
If the rent is directly to be
remitted to TIIC by escrow
mechanism 25% of the
Commercial Complex
loan amount.
Otherwise 50% of the loan
amount (excluding primary
land value).
In case the repayment is
secured by way of escrow
mechanism acceptable to
the Corporation (like units
who have obtained tenders
from ELCOT)

If the amount is directly

remitted to TIIC by escrow
mechanism 25% of the
loan amount; otherwise,
50% of the loan amount
(excluding primary land
value) if there is no escrow
mechanism.

- 56 -

7.

8.

Equipment Finance Scheme 25%

(EFS)
(i) No collateral subject to
the
following condition
that :
a.Company should have
done a minimum business
of Rs.25 crores in hire
purchase / leasing.
b.Should have a minimum
net worth of Rs.15 crores.
c.Credit rating - For Fixed
Deposit - FA
Assistance to NBFC
Overall rating
-A
d. DER
- 6:1
e. No. of years in
operation :More than 5
years.
f. DSCR-1.75 : 1.00
g. Capital
adequacy: 15%
ii. For other cases :
25% of loan
advance

- 57 -

Collateral security shall be

in the form of land and
building situated in city /
town limits which is easily
marketable.
No fixed
deposit will be considered
towards collateral security.
1.Working Capital Term
Loan 125% of the loan
amount.

9.

Working Capital Term Loan

for Service Sector Units
(WCTL
SS)
Marketing/Retail outlet for
Micro, Small and Medium
Enterprises

2.If the fixed assets that

are highly movable or
prone to rapid obsolence
100% for Term Loan
component.eg.
false
ceiling,partition,
equipments,furnitures,
vehicles,
computers,
softwares etc., when the
unit is set up in a Lease
hold premises.
3.If the unit is set up in
the own land and if the
assistance
is
for
the
construction of building
and for the creation of
other fixed assets required
for
the
consultancy
service, then the collateral
security not less than 50%
shall be insisted.
4.If
primary
security
includes land and building
collateral will be 50% of
the term loan amount.

- 58 -

S.No

10

Type of Proposal

Collateral Security
norms
i. In case of existing
assisted units who are in
the
standard category
continuously for the last
three completed financial
years.
100% of WCTL
(residual value of existing
primary and collateral
security may also be
considered for compliance
of
collateral
security
requirement.
However,
the value of machinery
shall not be taken into
account
for
this
computation).

Working
Capital
Term
Loan
to
the
existing ii.For units not assisted
assisted & non-assisted by TIIC, and which do not
have
working capital
Modern Rice Mills units
facility with any Bank,
then separate collateral
security for 125% of
WCTL
iii.If the unit already has
working capital limit with
a
Bank,
then
the
collateral security shall be
150% of the working
capital term loan amount.
This is applicable to
existing TIIC assisted unit
also whether they come
for a fresh WCTL or for
additional / enhanced
WCTL.

- 59 -

S.No

11

Type of Proposal

Working
Capital
Term
Loan for Manufacturing
and Processing Industries
(WCTL-MPI) except Rice
Mills

12

Highly
movable
and
saleable
items
like
computers,
sewing
machines etc.

13

15

a)Nursing home/Hospital
under RMP and hotel
b)Electro
medical
equipments
and
clinic
under RMP
Transport
vehicles
(including
TAHDCO
applicants)
1.
Branches
having
Overdues
a. less than 10%
b. More than 10%
2. National Permit Vehicles
Excavator / rigs / JCB

16

Harvestor

14

Collateral Security
norms
i) In case of existing
assisted units who are
in the standard category
continuously for the last
three
completed
financial years, 100% of
WCTL (residual value of
existing primary land
and
building
and
collateral security in the
form
of
land
and
building
will
be
considered).
ii) For units not assisted
by
TIIC,
separate
collateral security for
150% of WCTL .
100%

To be decided as in 1 & 2.
50%

50%
60%
75%
New customer 100% .
Existing customer with
satisfactory
repayment
record 50%
Rigs registered in other
neighbouring States - 125
%
100%

- 60 -

17

18

Generator:
a. TIIC assisted units in
Standard
Category
continuously for the
last 3 years.
b. TIIC
assisted
units
which
are
not
in
Standard Category for
the last 3 years.
c.For units which are not
assisted by TIIC
Kalyana
Mandapam
Community
Hall
Conventional Centre

No
Collateral
required

security

20% of the Generator Loan

amount.
50% of the Generator Loan
amount.

/ 50%
/
The units coming up below
the rank of municipal
limits and taluk Head
quarters ranging from
50% to 100% of the loan
amount.

19

For TL upto Rs.3 crores :

Qualified promoter :
50%

IT Industry / Computer
Training Institute

(B.E.(Comp.Sci.),
Computer Engg., I.T.,
Degree in Engg. with
Diploma in Comp.Science,
M.C.A., PG in Comp.
Science
Others : 100%
For TL above Rs.3 crores
:
To be decided as in (2)
above

- 61 -

20

Short Term Loan

150%
For TL upto Rs.3 crores :

21

Warehousing / Godown /
Container Freight Station

To be decided as in (1)
above
For TL above Rs.3 crores
:To be decided as in (2)
above
For loans upto Rs.3
crores

22

Equipments for port

related activity viz.
material handling
equipments like front
loader, crane for port
activity, fork lift, top crane
lift, reach stacker and
trailer etc.

(i)Existing units with good

working results and track
record
25%
- 50%

(ii) Others

For loans above Rs.3

crores
To be decided as in (2)
above

23

Windmill

24

Scheme for Doctors

growth

75% of Term loan and

125% of Working Capital
Term loan.

Take over of loan Scheme

a. All securities as offered

by the applicant for his
existing loan (proposed to
be taken over) will be
switched to TIIC.
b. Where the unit is
unable to shift existing
security
to
TIIC,
for
reasons like needing it for
its
working
capital
arrangements
with
existing
/
new
banker, or any genuine
reason (e.g. the present
owners of the properties
need them free of any
charge
for
personal
reasons) etc., TIIC may

25

20%

- 62 -

agree, subject to the

availability of alternate
security of the required
value
and
with
the
permission
of
the
sanctioning authority.
c. The personal guarantee
of all promoters will be
obtained, even if the
present bank / Financial
Institution
had
not
stipulated it for their
loans.
d.In the case of such
replacement
loans
for
high-cost borrowings, the
value of all collateral
offered by the applicant
shall not be less than
150% of the proposed loan;
for working capital term
loans and term
loans,
the minimum collateral
coverage shall be as per
TIIC norms for the type of
loans considered.
Blue metal units
26

New Units:
Existing Units:

100%
75%

42.1. Guideline for valuation:

1) The Value of factory land/Agricultural land to be assessed by
the Panel surveyor/BM/Officer as per the guidelines issued
earlier by the HO may be taken as such.
2) The value assessed by the Officer/Panel Valuer for Open Well,
Borewell, Compound Wall may also be taken into account for
Computing Value of collateral security.
3) Crops,Trees, Mines and minerals etc., available on the said
land need not be considered for purpose of value of collateral
security.
4) While assessing the value of agricultural land, guideline
value/market value shall be assessed on 'Per Acre' basis.

- 63 -

5) In case of residential flats/Commercial complexes, the value

may be computed as follows:
" The guideline value or market value to be assessed by the BO
or by the Panel Valuer as per the guideline earlier issued by HO
should be taken into account for the undivided portion of the
land and for construction (Including the Common area).The cost
per Sq.Ft after giving due effect for depreciation for the age of
the building should be taken into consideration. Besides, the Bo
may also take into account, the prevailing market rate per sq.ft
of construction in the area for the purpose of comparison before
accepting such properties.
Ref: PROJ/02-30/P-168/2000-2001
DT:19/07/2000
TIIC/HO/REC/2009-2010 Dt.11/06/2009

i. The land value shall be arrived by considering weightage of

70% for market value and 30%for guideline value(Assessed
value = 0.7 market value+0.3Guideline Value).The lowest of
market value or the assessed value as per the above calculation
will be taken as the value of land.
ii. In the case of existing customers having good track record
with the Corporation for more than 5 years and good working
results, relaxation of collateral security norms may be considered
on merits by the Sanctioning authority in respect of EC / Board
cases and for Branch Sanction cases with specific approval from
the Managing Director.
iii. The value of machinery or F.D shall not be taken in to
account for computation of collateral security in respect of all
working capital term loans.
42.2. Acceptance of Agricultural Land as Collateral Security
The responsibility of acceptance of agricultural lands as
Collateral Security is entrusted to the Branch sanction
committee in respect of the proposals sanctioned by branch
office taking in to account the marketability, accessibility, risk
perception of the proposal etc., provided no other suitable
Collateral Security is available.
However, the Branches to the extent possible shall avoid
taking agricultural land as collateral security.
PROJ/02-25/P-168/2001-02

Dt: 15/10/2001

- 64 -

42.3. Assets considered for collateral purpose:

i.

Land (including agricultural land which is marketable) or

land and building situated in Tamilnadu only shall be
taken as collated security. Other state properties will not
be considered.

ii.

The investment made by the promoters in the fixed

deposit scheme of corporation.

iii.

Assignment of LIC policies, NSC, FDR of scheduled

commercial banks, kissan vikas pathra and other gilt
edged securities with lien created in favour of TIIC.

iv.

Paripassu charge over the fixed assets mortgaged to

banks.

v.

In respect of existing assisted unit/concerns, residual

value of primary security (i.e) land and building and
residual value of existing collateral security can be
considered besides value of machinery @50% of the book
value

or

panel

engineers

valuation

of

machinery,

whichever is lower.
vi.

Gilt edged securities issued by Government of India may

be accepted with approval of Managing Director.

42.4. Fixed deposit As Collateral Security:

42.4.1. Loan sanction upto Rs.10 lakhs:

If the customer expresses difficulty to offer immovable

property as collateral, but agreed to invest in the fixed deposit
scheme of the corporation then we may accept fixed deposit
with lien created in favour of corporation exclusively as security.

- 65 -

42.4.2. Loan sanction above Rs.10 lakhs and up to Rs.50

lakhs:
If the existing unit comes under standard category of TIIC /
bank for 3 completed financial years, then we may consider
acceptance of fixed deposit, where the customer expresses his
inability to offer immovable property as collateral security.

42.4.3. Towards bridging the shortfall in collateral:

i) Fixed deposit made with the corporation can be accepted as

collateral to bridge the shortfall if any between the value of
collateral requirements stipulated by sanctioning authority and
the value of security assessed by the corporation as per its
norms. It shall be ensured that that shortfall in collateral is not
more than 50%:
ii) The quantum of amount to be invested in fixed deposit shall
be such that the maturity value of fixed deposit, up to the
terminal date of loan shall cover the stipulated collateral norms
for the term loan considered.
42.5. Third Party Collateral Security: while accepting
collateral security from the units the Branches are advised to
accept collateral security as far as possible owned by the
Promoters / applicant unit. Accepting Third party collateral
including the properties owned by the close relatives generally
need not be encouraged.
42.6. Depressed Class (DC) Lands:
It has been decided that assignment land / depressed
class land could be taken as security while extending financial
assistance to the borrowers by ensuring that the assignees have
complied with all the conditions imposed by the Government.
Whenever, there is any doubt regarding compliance of
conditions / right to mortgage, the Branch Managers may
obtain NOC from RDO/DRO before accepting such assigned /
DC lands as security.

- 66 -

Further, the Branches should exercise utmost caution

while accepting the DC land as security (primary or collateral)
from the Borrowers / collateral owners since the DC land can be
sold in auction by the Corporation only to the respective
community and assigned land as per the conditions imposed on
the assignee in case of legal action against the securities.
References:
Projects/02-66/P-6/2000-01
Dt: 05/02/2001
HO/Project-DEV.W/07-25/p-168/2006-2007 dt.1.12.06:
HO/Projects/02-11/P-168/2007-08
Dt: 12/07/2007
HO/PROJECT/02-12/P-168/2007-08
DT:25/07/2007
HO/Projects/02-29/P-6/2007-08
Date: 17/03/2008
HO/Projects/02-34/P-168/2009-10
Dt 28/01/2010
HO/Projects/02-42/P-287/2009-10
Dt:15/03/2010
HO/Projects/02- 43/P- 234/2009-10
DT:22/03/2010
HO/Projects/02-12/P-86/2010-11 dt: 08.06.2010
Legal/11/02/2010
07/07/2010
TIIC/PROJECTS/02-11/P-229&262/2010-11dt:
15/10/2010
HO/Projects/02-22/P- 283/2010-11 Dt: 03/12/2010
HO/Projects/02-26/P-277/2008-09 Dt:11/11/2008
43.0

Credit Rating:

The system of Credit Rating has been evolved with the

intention to assess the risk level of the project and help in
improving the quality of appraisal.
Each parameter will be classified under either Low,
Medium or High Risk and correspondingly scores are awarded.
The marks scored divided by three will result in percentage
score, which will help in further grading alphabetically Viz.,
TIIC- P-AAA, TIIC-P-AA etc., The client with high rating Viz.,
TIIC- P-AAA is the most secured client/project and the client
with low rating Viz., TIIC- P-D is the least secured
client/project.

- 67 -

GRADING OF BORROWERS/PROJECT
MARKS SCORED
1. Above 95% to 100%
2. Above 90% to 95%
3. Above 85% to 90%
4. Above 75% to 85%
5. Above 60% to 75%
6. Above 50% to 60%
7. Upto 50%
Ref:Project/02-05/CRMC/2003-2004

GRADING
TIIC-P AAA
TIIC-P AA
TIIC-P A
TIIC-P BB
TIIC-P B
TIIC-P C
TIIC-P D
Dt:12.4.2003

ACCEPTANCE LEVEL
Highly rated borrower i.e. low risk proposal are having
scores above 85%. There is no pricing of loan initially, but the
rating helps in monitoring and reviews in various steps and
followup. The collateral security as stipulated earlier for low
risk perception proposal shall apply for these projects.
The borrowers rated between 60% to 85% are
Acceptable Risk Proposal. The sanctioning authority shall
ensure that all risk factors (including non-collateral factors)
are secured besides adequate collateral security being
obtained as per the existing norms.
The borrowers rated between below 60% are of high risk.
The Sanctioning authority shall seek all the risk factors either
by way of increasing the Promoters Contribution or by
increasing the collateral coverage or by any other mean, which
in the opinion of the Sanctioning Authority will best secure the
interest of the Corporation.
If the rating is below 50%, the proposal is liable for
rejection.

S.No

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

- 68 CREDIT RATING OF THE BORROWERS AND THE PROJECT

Weigh
PARAMETER
Score
(3/ 2 / 1)
tage
(a)
%
(b)
Qualification: Relevant / Not Relevant / Not
Qualified
5
Experience : Relevant / Not Relevant / Not
Qualified
5
Integrity
: Beyond Doubt / No Doubt /
Unknown
5
TIIC Record : Prompt / Marginal / Chronic New
5
Unit's Age : >5 years / 3-5 Years / <3 Years
5
Management : Prof. <40 / Prof. in selected
40-60 / No Prof. >60
5
Exp. With Bank : Good Standard /
Satisfactory / New Account
5
Net worth
: > 2 times of loan / => Loan / <
5
Loan
Technology : Proven - No Problem / Existing
Charge in long run / New Technology
4
Supplier
: Standard / Approved / Others
4
Location
: Suitable with no cost / Suitable
with cost / Huge cost at changes
4
Infrastructure : Available / Made available /
4
Capital Expenditure
Raw Material : Available / Ensureable /
Seasonal
4
Working Capital Assessment : Bank tie / Can
tie / No Bank tie
3
Regulatory Frames : Obtained / No Problem /
Difficulty
2
Collateral : > 1.5 times of norms / 1-1.5
times of norms / less than norms
10
Market Potential : Stable / Competitive /
2
Highly Competitive
Marketing Tie-up : Assured / Enquiry letter
got / New market
6
TIIC Experience : OD-OS less than 20% / 2030% / above 30%
4
Promoter's Contribution : >40% / 25 - 40% /
>25%
4
D.E.R. : <1 / <=2 / <=3
2
D.S.C.R. : >2 / 1.80 - 2.00 / 1.50 - 1.80
2
Working Results : CP & NP for 3 / Less than
3 Years / New
3
Liquidity : Current ratio > 1.33 / 1.00 1.33 / New
2
TOTAL
100
CREDIT RATING OF THE PROJECT /
BORROWER (Total Score / 3)
Grading
: TIICType of Risk: High / Acceptable /Low Risk
proposal
=

Total
Score
(a)x (b)

- 69 -

44.0

Proposals coming up in Other Branch Jurisdiction:

Whenever there is a request from the clients to have their

account in a Branch Office, other than the one where the

factory

is

located/multiple

factories/

Residence

of

the

promoter/Registered Office, etc., the same may be considered

subject to the prior approval of Head Office and with the
intimation to the jurisdictional branch(es).
45.0 Concluding Remarks
Though every effort has been taken to incorporate all the
relevant circulars normally referred to in appraisal of term
loans, the concerned official may refer to the specific circular(s)
for full details wherever any doubt arises/further clarifications
are necessary.

P.S.
It is needless to say that the officials can bring any
item/information for inclusion/ suggestions for improvement of
this version to the knowledge of Project Department at Head
Office for necessary action.

- 70 -

ANNEXURE I
Banned Industries - List:
1. Alcohol (Whether based on molasses or non-molasses as
raw material)
2. Briquetted fuel (based on agricultural wastes like paddy
husk, groundnut shell etc.)
3. Fishing Trawler/Boats,
4. Mechanised Fishing boats
5. Match units ( Ban on Mechanised Match units lifted as

per HO circular HO/PROJECTS/02-27/P-9/2010-11 Dt:

18/01/2011)

6. News paper units (Printing & Publishing)

7. Sailing vessels
8. Treadle printing
9. Wafer cone units
10. Calcium carbide.
11. Plastic reprocessing units based on imported plastic
wastes.
Ref:Proj/02-155/P-9/93-94dt.15.11.93
12. Granite Industries
PROJECTS/02-06/P-9/98-99

DT 24/04/98

13. Private LPG bottling plants

Ref: Proj/02-07/p-200/99-00 dated 30.4.99
14. Rapier looms manufactured in china.

Ref: HO/Project-dev.w/07-20/p-269/2006-2007dt.11.10.06
15. TEA manufacturing units

Ref: PROJ/02-1/P-1/1999-2000

DT:17/06/99

- 71 -

ANNEXURE II
ORANGE-I CATEGORY INDUSTRIES:
1. Sago units
2. Food & allied products industries
3. Beach resorts
4. Stone crushing units
5. Stone and mineral polishing units
6. Surgical gauge & bandages and cotton
7. Sizing & textile printing units
8. Bleaching units
9. Khandasari sugar units
10. Sea food processing unit
11. Aqua-culture ponds (including hatchery)
12. Solvent extraction units
13. Leather boards
14. Industrial gases
15. Salt manufacturing
16. Printed circuit boards manufacturing units
17. Institutions generating effluent
ORANGE-II CATEGORY INDUSTRIES
1. Flour mills
2. Textile spinning mills
3. Light engineering industries (without phosphating,
electroplating and galvanising & heat treatment involving
cyanide)
4. Medium & small scale biscuit &bakery units
5.pharmaceutical formulation units
6. Cashew and cashewnut shell processing units
7. Mushroom units
8. Automobile services & repair station
9. Printing(paper)units (large & medium only)
10. Surface coating industries
11. Food grade fragrant & additives
12. Injection moulded plastics & pvc products
13. Modern rice mills
14. Wirecut brick kilns and chamber brick units
15. Lime kilns
16.. Tissue culture
17. Cine theatre
18. Hotels & amusement park
19. Tea/coffee plantations
20. Beverages
21. Mineral water units
22. Wood treatment units
23. Milk chilling units.
Cont..

- 72 -

ANNEXURE II
LIST OF INDUSTRIES UNDER RED CATEGORY
1.
a)
b)
c)
d)
e)

Ferrous Metallurgical Industries

Integrated Iron and Steel (Metal)
Ferrous - Alloys
Special Steels
Iron and steel castings and Forgings
Smelters

2.
a)
b)
c)

Non - Ferrous Metallurgical Industries

Primary Metallurgical producing industries namely Zinc,
Lead, Copper and Aluminium
Non-Ferrous castings and Forgings
Smelters

3.

Mining Industries

a)
b)
c)

Coal Washeries
Hydraulic Mining
Hydraulic transport

4.

Ores/Mineral Processing Industries

a)

Benefication and / or Pellatisation

5. Coal including (Coke) Industries

a)
b)

Coal, Lignite, Coke etc.

Fuel Gases ( Coal, Gas ,Producer Gas, Water Gas and the
like)

6.

Power Generating Industries ( Except Hydro-Electric)

7.

Paper and Pulp Industries with Digestors

8.

Fertilisers Industries ( Except Mixing plants)

a)
b)
c)

Nitrogenous
Phospatic
Mixed

9.

Cements (Including Cement Asbestos Products)

Industries
Portland cement (Including Slag cement, Pozzalona
Cement and their product)
Asbestos Cement Products
Cont

a)
b)

- 73 -

ANNEXURE II
10.

Petroleum Products

a)
b)
c)
d)
e)

Oil Production
Oil Refining
Lubricating Oils and Greases
Oil Exploration
Storage Facilities

11.

Petrochemical Industries

12.

Drugs and Pharmaceutical Industries

( Except formulation industries)

13.

Distilleries & Breweries except IMFL & Bottling plants)

14.

Rubber ( Natural -Synthetics) Manufacturing Industries

(Excluding Tread Rubber, Retreading Units)
--Other Rubber Goods

15.

Paints, Enamel and Varnish Industries

16.

Tanneries

17.

Dairy Industries

18.

Chemical Industries

19.

Insecticides, Fungicides, Herbicides and Other Pesticides

industries

20.

Synthetic
Resin
and
Plastics
manufacturing industries only

21.

Man made fibers (Cellulosic and Non- cellulosic Industry)

22.

Ceramic and Clay Products Industries ( Excluding Bricks

and Tiles manufacturing units)

23.

Sugar Mills

24.

including

PVC

Engineering Industries (Heavy).

(Excluding units having fabrication only)
Cont..

- 74 -

ANNEXURE II
25.

Hospitals (Having
laboratory Facilities)

26.

Textile Processing (Bleaching and Dyeing, Yarn Fabric)

27.

Glue & Gelatine manufacturing Industries

28.

Photo Film manufacturing & Cine Film Processing units

29.

Tyre and Tubes Manufacturing units

30.

Vegetable Oil Manufacturing units

(Excluding Expellers)

31.

Soaps and Detergents Manufacturing units

(Except hand made units)

32.

Glass and Allied Products, Fibre Glass Manufacturing

units

33.

Confectioneries (Except Cottage Industries)

34.

Large Scale Biscuits Manufacturing units

35.

Instant Tea/Coffee Units

36.

Chlor-Alkali & Soda Ash Manufacturing Industries

37.

Explosives Manufacturing units

38.

Match & Fire works Industries

39.

Lead Recovery from Old Batteries

40.

Dyes and Dyes Intermediate Industries

41.

All Common Effluent Treatment Plants and Incinerator

facilities

42.

Electroplating and Galvanising industries

43.

Abattoir & Slaughter Houses

44.

Liquid Propulsion and Rocket Testing Facilities

45.

Heavy Water Plant

Operating,

Diagnostic,

Cont..

Clinical

- 75 -

ANNEXURE II
Registered Medical Practitioners(RMP)
1.RMP for setting up of clinics without Clinical lab and surgical
lab/ operation theatres - maybe treated under Orange II
category for purposes of disbursement

2. RMPs with clinical lab, operation theatre/surgical lab etc.

a. TIIC loan upto Rs.100.00 lakhs - need not insist on PCB
clearance if project includes purchase of installation of
incinerator.
b. TIIC Loan above Rs.100 lakhs
- to insist on PCB clearance
as in red category.
GREEN CATEGORY INDUSTRIES:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.

16.
17.
18.
19.

20.

21.
22.

Wasting of used sand by hydraulic discharge

Atta Chakkies
Rice Millers
Ice Boxes
Dall Mills
Groundnut Decorticating (Dry)
Chilling
Tailoring and Garment making
Cotton and Woolen hosiery
Apparel making
Handloom Weaving
Shoe lace manufacturing
Gold and Silver thread and Zari work
Gold and Silver smithy
Leather foot wear and leather products excluding tanning
and hide
Processing
Musical instruments manufacturing
Sports goods
Bamboo and cane products (only dry operations)
Card board box and paper products (paper and pulp
manufacture
excluded)
Insulation and other coated papers (paper and pulp
manufacture
excluded)
Scientific and mathematical instruments
Furniture (Wooden and steel)
Cont..

- 76 -

23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.

ANNEXURE II
Assembly of domestic electrical appliances
Radio assembling
Fountain pens
Polythene plastic and P.V.C. goods through extrusion /
moulding
Rope (Cotton / Plastic)
Carpet weaving
Assembly of air coolers, conditions
Assembly of bicycle, baby carriages and other small nonmotorized
Electronics equipment (assembly)
Toys
Candles
Carpentry - excluding saw mill
Cold storages (Small scale)
Oil ginning / expelling (no hydrogenation and no refining)
Jobbing and machining
Manufacture of steel trunk and suitcases
Paper pins and U-clips
Block making for printing
Optical frames
Tyre retreading
Power looms and handlooms (without dyeing and
bleaching)
Printing Press
Garments stitching, tailoring
Thermometer making
Foot-wear (Rubber)
Plastic processed goods
Medical and Surgical instruments
Electronic and electrical goods
Rubber goods Industry