DIRECTORATE OF ECONOMIC RESEARCH AND BANK FINANCE, KHADI AND VILLAGE iNDUSTRIES COMMISSION, GRAMODAYA, IRLA ROAD, VILE PARLE (\WEST), COMBAY 400 066. No, BF/16 (i)/TI-73 Bank Finence Celt Procedure for operating “Intiwest Subsidy Scheme” under institutional financing for Khadi and Village Industries cter No. 4 (47/75-KVI (1) dated 17-5-1977 have epproved a comprehonsive interest subsicly scheme for institutional financing of the Khadi and Village Industries Programme. 2 ‘The Interest Subsidy Scheme shall be applicable to the foliowing types of loens from Institutione! financing agencies. (i) Loans raised by the Khadi and Vilage Industries Corsmission (KVIC) for disbursement as capital investment and wor 4 capital loans to (a) A State Khadi and Village Industries Board (b) A registered institution: A registered institution means an institution registered under the Societies Registration Act 1860 (21 of 1860) or under any other law for the time boing in force in any State. : (c) A Co-operative Society: A co-operative society mesns a society registered under the Co-operative Societies Act 1912 (2 of 1912) or under any Co-operative lew for the time being inforce in any State, This includes the industrial co-operative societies, the service co-operative Societies and the bloc level multi-purpose co-operative societies, (d) A trust created for public purposes ol a charitable or religous nature. (i) Loans raised by the Khadi and Village Industries Commission for purchasing, stocking and distribution of mw materials to registered institution and co-operative ‘societies and for the production and seles activity underteken by the Commission depert- ‘mentally. (Ni) Loans raised by the Stete Khadi and Village industries Boards for disbursement of capital investment and werking capital loss to institutions/co-operative societies/ individual artisans or to meat requirements of its departmental activities connected with the production and sales of Khadi end Village Industries products,2 (W) Loans raised by tho Registered inatitutione to meet their capital investment and working capital neads, (¥) Loans roised by t's Co-operative Sécieties to mest their capital investment and working capital neads 2. he interest suvciey vit 30 eeissible on the turds reiged for the development of Khadi and Vilage indusiics, 63 specified in the schedule of village industries in the KVIC Act. The industries whist sy he egecifiod from time to time in pursuance of Notification. wunder Section 3 of she rai Act ulao vill qualify far tho interest subsidy, 4 Finencisl in the seheile! snd non-scheduled banks, {insluding the Seeta Fn veldieriey . icnalised banks and co-operative banks), Stata Firs ‘at Pavelopinent Bank of India end other financial Institutions wii any cs ist Act ef Periamant or State Legislatures. 6. The quanti of Of interest charged by the borrower. If at ony sta: mis modified, tg <1 rate of interest che: =~ viva to finehed wo the eifierence between the actual rate iG inciitwtdons and: (four) per cont to ba bore by the © fete charges by tha Khadi and Village industries Com- Subs shall be limited f the differance between the sisi ‘esritutions and sich modified rate of interost. ‘nied in the following manner : cg svoanis to tho budget section of KVIC, State coe Inuvstr 3 “epuravely, tunds fikely to be made avail- able to them frcr> Inesebyw ins, o.eea net cad algo institutionwiee. As regards the «ir 2 “Sosfes-operativa sovine:, similar information will be sent by the concmad i> the ccacamed State Directors nd/or tha Buogor Sectios = tna tet “xe! W, i. Commission, betore the budget. éiecus- sions aro heise 1 Gi) Aftor the .asipt of Leo above iuiormation by we sion/the Stet. Sircctors of v3 Tommia Budget discussions with the v.1esmned © and the programme fer < tion, the budgst section approval. Similarly, eit cudgat section of the Commis » oteGtie<'9na Will bs held at the time of Annual ti7o #oerde/Institutions/Co-opurative Societies, vancing, will be finalisad. Ay usual, efter finelisa- S @en3 tie proposals of the State Boards to the S.F.C. for their ‘cussion: aro held by the State Directore, or ut the H.0. of jon propar: ¥/ aide« institutions, co-operative societies etc. will be sent to the concerned fowxere7 =n directors wio will place their proposals before the S.F.C. Sic SFC of the Commission, the Benk Only such State Bosrds, in the sanctions of the S,F.C. will qualify for iniorea (iv) On-n9 5003 wi the ben for different pur... oka Bank F cates in favour of the conau.ite to i respect of benk borrowings Subsidy Eligibility Cortii- ‘Su-oporstive Sociaties etc.23-3) (¥) In respect ot institution Boards, the Stote Boards will ings by these agencies Eligibility Cerzificato ind co-operative societies working under the State sue the Interest Subsidy Eligibility Certificates for borrow- from banks within the limits indicated in the Interest Subsidy saved in ther favour by the Commission under peru (iv) sbove. (vi) The Interest Subsidy Eligibility Certificate to be issued by the Commission would be signed by the Chief Executive Officor of the Commission or he may delegate powers to the Dy. Chiat Executive Officer (K) and Dy. Chiet Executive Officer (V-1) Similarly, the Intorst Subsidy Eligibility Certificates to be issued by the State Boards in respect of i ‘tutions and societios/working under them should ba signed by their C.E.O./Secretary/ Executive Officer/Administrator. (vi) On the strength of the interast Subsidy Eligibility Certificate the State Bosrd/ institutions /co-oporstive societies ezc., will negotiste with their bankers for the required financial accommodation, (wii) The fina! decision to accapt or reject any 'o0 application from eligible borrowers will vest with the banks. However, in case tha banks reject some epplications they may indicate to the Commission/the State Board the seasons for rajecting the losn applica- tions. (ix) Tho Commission will have no liability of any kind either in respect of the principe! amount of loan or payment of 4 cor cent (oF at revised rate) interest to be bome by the borrowers for which interest subsidy eligibility certificate hae been issued by the Com- ion, or by KVIB. Its liability shall be restricted only to the extent of peyment of inter est subsidy as par scheme, (x) The concemed inatituticns/Ststa Boards vail inform the Commission about the ‘amount sanctionad by the banks in each case, the verms and conditions (ebout the rato ‘of interest, the tenure of foan etc.) on which such smounts are sanctioned and the position about the release/drawal of funda sgainst such sanctions as soon @s tho loans /limits are sanctioned by the banks and evailud of by the inutitutions/State Boards ote. (xi)" In respect of cirectly aiid institutions (including State Bosrds) the basks shail Sdvise the Commission about the sanction and disbursement of loans to the borrowers in respect of whom the interest subsidy oligibility certilicates are issued ky the Commission Giving reference ta the Interest Subsidy Eligibility Certificate issued by the Commission. Gai) In cospect of the institutions and co-operative societies whose loan applications have beon racommended by the State Khadi & V. |. Boards, the banks shall adviee regerd- jing the sanction end disbursemertt of loans to such borrowers to the concemed Stste Khedi ‘and V. |, Boards, (nil) The bank will advise to the Commission/‘stete Boerds sanction and disbursement of loans (vide pare xi and xi) in Form No, 2. (xiv) The Stam !ho6i ang V1, Boards, the Scate Directors of the Commission and the Khedi and V. J, Cor.icsion, Bombay will maintain interest subsidy cleim registor in Form No, 3 industrywiew. (1684 or ancubeect of insucutions (ineuding State Boards) whose interest ‘subsidy eligi- sai caticates aro issued by the Commission, the banks shell subse erie interest aub- SRY Slnime in Form No. 4 giving retronce tothe interest, subsidy cligiilty certificate No. sanatt® 2nd 40 the No. and date of bank's payment advices and salty funds. Those Sais may be sent to the Commission's concerned Steie Directors who will scrutinise the » Gime and send the sure to the Bank Finance Cell of the Commisseny payment, (prvi) Tespect of institutions snd co-operative cocitios whose intrest subsidy bility certificates were issued by the ‘0 the concemed State Boards their (xvii) ° Tho claims received by the State Directorate of the Commis signed by on oficer not below tho rank of State Director et the Commission, (Grvil) ln respect of claims raceived by the State Kiadi and V. |. Boards the claims must bbe countersigned by an Officer nét below the rank of Socretary/Chiet Executive Offcer/ Executive Oficer/Administrator of the State Khadi and v1 Boards. (uix)’ Tila Dirvetor, Bank Finance shall advise payment of such laims to tho Chief ‘Accounts Otticor after entering them in tho register, . Note: (i) For the loans raised by the Stote Boards, to meet the requirement of their Sebartmental activities or for disbursement (vide para 2) the precedent proveribed for the Girectly sided institutions would be follewed. (ii) These payments baing of a routine [nature and of committed charactor tke salesrebste ‘te. no speci wanctan of tha Stand Be Eiance Commitee would be fecosservfar individual payment. Howener they would be covered by the budget allocati“n «2 for interest subeldy to be paid to the banks. (ii) Chief Accounts Officer shall errange paymont of interest Subsidy emount as per ge instruc:ions af the Bank Finance Cell under advice to the section ay the concerned State Director or the State Khadi and V. 1. Board, who would make tho nase of such Payments in their registers of claims. iv) It may be necessary to open a proper head in the monthly and ennuel Scrounts statements of the Commission, to indicate the disbursement o to the banks, 7. The above procaduro takes elfect from 1-4-1977 and issu : with tho concurrence Of the Financial Adviser of KVI» (S/BF/FORM NO. 1 (A) INTEREST SUBSIDY ELIGIBILITY CERTIFICATE to be issued to the S:ate Khadi ard Village Industries Board Name of the Stars osid 2) rd whose budge . by the Commi: ors the limita of bares » ve:tow in stncionad by si» (indvstry-wise 3) The Khadi and Vilage indusiviss Commission agre. yo the Ste Boara surrendering st. first charge on tho a: 13 above instiu favour of the Eon: 4) The State De oa the Berke inte~ elig. ity Ceri its mespcet of + sates ion in Fe : 5) The Gommission would be table to pay interest subsidy as. pe. tha scheme only fer she perio for which the lean is anction- by tho bank ane is not liable +: Poy such interect evbsidy fo; the defeulted poriod To, CEO /E0/s * (hadi ond Vilage tne Copy to: Chiet Executive Officer Khadi and Village Industries Commission1S/BF/FORM No, 1 (B) Addrans {OF the State Office /State Board) No. IS/ (State) (Industry) (running No.) Date ..... INTEREST SUBSIDY ELIGIBILITY CERTIFICATE Full Name of the borrower Complete address of the borrower : Industry Purpose : ie Amount of loan (Ro.} The ebove mentioned (Instituton) has applied to (Name ond acdress of the Benk) for @ loan of Rs. e a Ls (purpose and industry) The above loan uzio Fe. will be eligible for the intorest subsidy payable by the Commission in terme of Govt of of Indusiie india, Ministry of industry doted the 17th May, 1977. Development) letter No. 4 (47)/75-KVI(I) The Commise: and immoveable) of the above inciits » uioes 20 surrender its first charge over the assets (mevesblo 1 in (vour Of the Banks, The final decis’: ‘pt oy reject any loan application from eligible borrowers will vect with wo banks, However, in cage the banks reject some eppiostions they may indicate to the Commission/the Sicte Boscds the reasons for rejecting the loon application. The Commission will have no liability of any kind either in respect of the Principal amount of lean or payment of 4 per cont or revised rate of interest to be bome Y the borrowars for which interest subsidy aligibity cortifcate hes boon issued by the Commission. ts lability shell bo restricted only to the extent of payment of interest subsidy as por schome. The Commission would be liable to pay interest subsidy as per the scheme only reronee, Rriod for which the loan is sanctioned by the benk and ia not lable to pay sock intorest subsidy for the defaulted periae, This is issued tor the ysar v. CE.O., Kadi and V. 1. Board/KVICIS/BF/AFORM No. 2 Bank (Name & Address) (Address 07 the State Cffizo/State Board/institution/Co-operative Society) Sub: Advice about payment of Sub - Advize about payment of loan of Rs. to fora 2 ee under the Interest Subsidy Scheme of the KVIC. Ret : Your intorast subsidy Eligibility Cortificsis bi Date Sir, With »\ your above mentionad Interest Subsidy Eligibility Certificate. 1am to advise you that our bank has senctioned/disbursed a losn for Rs. to for on (Dste) ‘The loan carries an imierest ar % end is repayable Yours faithfully, ( ) Agent / Manager Bank Copy to: The Directa: (3 Khadi and V. 1. Come BOMBAY. 400°056.& zw iz “o_ “6 ‘a “th “9b ‘st yh “eh zs oH ewan ° yuouked — pied wou aso 80 3 oy seul jo tu wot pena eneey. a ydieoos—Auanooey 40 ywausked eo « epowy ape wwauihed wes qucmy —-pouod = ateg «=O BPO imy—auruay_— jo sieg_—wunowy__avep ‘suteia Apisqng 1s9se1ut eonpy ivewAed $4ueR 6 e 2 2 2 if c = yueg ey so owen UnoW) exe; sequin 801 d samo1s09 aes Ren an jo ssouppe ay) jo asoding aunowy ‘eidwog eweu jing ‘yeaiyqueo Anyiqibuy® Apisang 186103U1 Tasrpy TaisiGey suelo Apisang se1eIU 8 ON WHOS/J8/SI“yepujo Pleo “1 “AB IPA IS -Jo:9440 DIAX 8010 VES nuety yung 28 AG 33 05 DIAA OH HH pasojove 09 01 siuno20y Jo 1UeWEIEIS & sou, ponies) ueeq 20u omy wioy paue> foreans sseveu 30 junewe OY IN ‘Ayueo ob St SL ve eh zs 2 cee seu spowen ‘soIpy iwewessngsig S.xUeG ws & eo t aun asrenpui) pesungs samassag & yewsou out Ye iseveiu4 40 7 40 qunowny Jo ssomppy @ ou" ons aig Ta enn _ Gi eae 40) sonnesodo-o9 /svoanausu) S01 vojsejurusog seusnpu; oBPi/A PLE PRU ee “hq aigeded Apiegns iseziul jo weUssleas FON WeOsT sBISi enpuy @BoA pu ypOyy 2 SoDLEAPE JO Icedsas UL (ssappy ouieN) 7 weg