Canara Bank :: SME Business

Scheme for Rejuvenation, Modernization & Technology Upgradation of the Coir Industry (REMOT)

NEW CENTRAL SECTOR SCHEME OF MINISTRY OF MSME, GOVT. OF INDIA FOR REJUVENATION, MODERNIZATION & TECHNOLOGY UPGRADATION OF THE COIR INDUSTRY (REMOT)

The REMOT scheme is approved by Ministry of MSME, Govt of India for implementation during the XI Plan period (2007-12) till March 2012. Coir Board, Kochi is the Nodal Agency for implementation.

Objective:

To modernize coir industry by adoption of modern technology in production and processing of coir in the spinning & weaving sectors; To increase the efficiency and productivity for enhancing the earnings of the workers and income of spinner and tiny/household sectors; To generate employment in the rural areas of the coir producing States; To provide more employment opportunities for women in the rural sector for gender empowerment; To contribute to inclusive growth of vulnerable sections of the beneficiaries especially those belonging to Scheduled Castes (SC), Scheduled Tribes (ST) and North Eastern Region (NER)

Selection of beneficiary:

The applications under the scheme are generated by the Coir Board and beneficiaries conforming to the eligibility criteria are selected by a committee constituted by the Coir Board.

Spinning sector

Tiny/Household sector

Eligibility

An individual (identified by Coir Board) engaged in the production and processing of Coir and also such new unit – having a minimum 2 cents of land of own/lease for a minimum period of 10 years (documents in proof to be produced) & producing project proposal in the prescribed format approved by the Coir Board and the Bank

An individual (identified by Coir Board) engaged in the production of traditional Coir products, viz, coir mats, mattings, carpets, rope, rubber backed coir products, coir pith processing units etc., registered with Coir Board – having a minimum 3 cents of land of own/lease for a minimum period of 10 years with minimum infrastructure and experience in the field of manufacture of Coir and Coir products & producing all relevant details regarding the ownership of land, lease document, experience in the filed of manufacture of Coir and Coir products with details of project proposal certified by a Chartered Accountant/Chartered Engineer along with the prescribed format approved by the Coir Board

Project cost

Rs.2, 00, 000/-

Rs.5, 00, 000/-

Promoter’s investment

5%

5%

Nature of loan

Term loan

Term loan

Quantum of loan

Rs.1,90,000/- (including Govt. grant /subsidy equivalent of Rs.80,000/-)

Rs.4,75,000/- (including Govt. grant/ subsidy equivalent of Rs.2,00,00/-)

Rate of interest

BPLR-1.75%

BPLR-0.75%

Upfront fee on Term Loan

50% of the normal charges (No upfront fee on Govt.grant/ subsidy portion of the loan)

Normal charges (No upfront fee on Govt.grant/subsidy portion of the loan)

Government grant/Subsidy

40% of the project cost, maximum Rs.80,000/-

40% of the project cost, maximum Rs.2,00,000/-

Repayment & Repayment holiday
  a. Term loan excluding the Govt. grant/subsidy portion to be repaid in 60 months in EMI/monthly/quarterly/half yearly installments along with accrued interest commencing 6 months after availment of the Loan from the Bank.

  b. Interest charged during the repayment holiday is spread over the entire repayment period and paid along with monthly/quarterly/half yearly installments.

Security
  a. Hypothecation of assets created out of loan and Govt. grant held as prime security

  b. No collateral security including third party guarantee to be insisted.

Insurance

Assets created out of loan and held as security by the Bank to be insured

CGMSE cover

Loans granted under the scheme to be covered under Credit Guarantee Fund for Micro & Small Enterprises of Credit Guarantee Fund Trust for Micro & Small Enterprises. The Upfront and Service Fee are to be borne by the borrowers.

Conditions apply. The information provided above is only illustrative and not exhaustive.
Contact:

For more details, please contact your nearest Canara Bank branch or E-mail to: hosbu@canbank.co.in