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New Delhi, March 8: The National Industrial Development Corporation has formulated a new scheme for granting loans up to Rs 10 lakh to cotton textile and jute mills for speedy modernisation and rehabilitation, says a press release.
The scheme will be in operation in addition to the two other NIDC schemes for long and short-term financing of the programme of modernisation and rehabilitation of machinery in selected industries.
Loans granted under the new schemes, like bank advances, will be secured by a simple promissory note executed by the mill company with an equitable mortgage or guarantees as collateral security. Repayment of the loan will be in five equal instalments but the first instalment will fall due only two years after the withdrawal of the loan amount.
Under the long-term financing scheme, the National Industrial Development Corporation has so far sanctioned loans totalling about twelve-and-a-half crores for facilitating rehabilitation and modernisation of machinery in 27 cotton textile and 24 jute mills. A sum of Rs 5 crore has been drawn so far and further disbursements will be made as and when the machinery is delivered and paid for.
Loans under the long-term scheme are repayable in 15 annual instalments, the first instalment beginning 18 months after the loan has been drawn.
09 March, 2010 by admin