Tamilnadu Industrial Investment Corporation Limited (TIIC) launch the TNEB Bill Financing Scheme to offer financial help to the MSME sector. Also, the scheme gives funding for the MSME. Even non-manufacturing enterprises to whom TNEB issues a purchase order. The scheme also includes the manufacturers of indigenous machinery, capital equipment, components sub-assemblies, etc.
The objective of Bill Finance TNEB Bill Financing Scheme for contractors
This scheme aims to discount the bills of TNEB as per purchase order or turnkey projects.
However, the Tamil Nadu Electricity Board operates by the Government of Tamil Nadu, India. Therefore, it is a power generation and distribution company. Also, as a successor to the former Tamil Nadu Electricity Board, it establishes under section 131 of the Electricity Act.
So all MSME units and service providers to whom TNEB issues orders for the supply of available materials. Also, the work contract’s execution is eligible to avail of the advantages of the bill financing scheme. Certainly all the Registered Contractors or Units of TNEB eligible.
Quantum of Loan
The quantum or scale of assistance 50% of the value of the order by TNEB.
The withdrawal limit set up to 75% – 85% of the invoice bill’s total amount. That is after subtracting the percentage of retention amount mention by TNEB. Also, the maximum 85% of individual bill amount only. As per the scheme, whichever is lower.
The Maximum credit period of 120 days for every bill is granted.
(a) The loan back by post-dated cheques issued by the unit. Therefore, the value of post-date cheques must infer to the amount charged from the date of disbursement. To the date of the post-date cheque, i.e., 120 days from the date of disbursement, for each bill, together with interest.
(b) The loan back by the personal guarantee of the unit’s owner/partner/directors.
(c) In the case of a limited company, the fee also must provide by the ROC.
Application Procedure for the TNEB Bill Financing Scheme
To appeal for the bill financing scheme for TNEB contractors, follow the procedure mention here.
- Firstly, please visit the official website of TIIC, Tamilnadu Government.
- Secondly, click on “Application form download” under the scheme option, which displays the portal’s home screen.
- After that, choose the respective application form from the list of TNEB contractors.
- Instantly the form for the bill financing scheme downloads on your screen.
- After that, the application form with the necessary details such as
a) Applicant name
b) Organisation Address
c) Type of Industry
d) Details of the Director or Proprietor or Partners
- After filling in all the necessary information and then add the essential documents along with the application form.
- Now appeal the duly appointed application form to the nearby TIIC office.
Note: The concerned authority verifies the apply with the details. If happy with the application, process the application further.
List of TNEB contractor documents
- Firstly, a Copy of MSME registration and application.
- Secondly, Revenue – Tax Inspection Orders or Certificate of Removal of Owner / Partner / Director individually.
- Signature of authorized signatory of the applicant unit certified by the Bank of the unit.
- If Private applicant is Private or Public Limited Company also provides Articles and Memorandum of Association with a list of Directors/shareholders.
- In the case of a partnership involving a copy of a duly registered partnership agreement. Also, a letter of intent from the authorized partner, a certificate of solid registration.
- Private / Public Limited Company, also provide a copy of the Board’s Decree authorizing the signatories to sign and represent the company. In the case of a co-operative company, the power of the signature attorneys to sign the TIIC.
- Statement of total owner/partner / Director and details of concerns associated with share details.
- In addition, a copy of the sales tax clearance certificate.
- Copy of TNEB procurement order for the supply of ASCR operators / AAAC operators / Transformers for the current year.
- A Copy of orders for the last two years from TNEB for supplying ACSR / AAAC / Transformers operators.
- Also, sample invoices for the TNEB-related unit and other related documents provide to TNEB.
- Permit letters from guarantors to provide your guarantee in the prescribed format.
- Any other documents which are also relevant to the TNEB Provision Bills.
- Copy of ISI Certificate (IBI License)
Importantly, audited performance results in financial statements for the past two years.
Processing Fees of TNEB contractors scheme application
The processing fee ranges from Rs.2, 000 / – to 1%, depending on the scheme use receives at the time of receipt of the application.
So, the renewal fee is 0.50% of the applicable limit collects for the renewal.
Interest Rate applicable on-bill finance scheme
The proposed interest rate charges under the billing system infer 13.70%. Also, in the penalty fee, the interest rate is 2.5% of the amount paid over the fixed term.
In the bill finance scheme for TNEB contractors, collateral security is NIL.
Validity of Sanction
The sanction valid for one year from the date of approval. However, it can repeat every year on the production of the TNEB purchase order for the next year.
Regional Loan Sanction Committee (RLSC)
Also, the scheme covers indigenous machinery manufacturing, capital equipment, sub-assemblies of components, etc. Along with GM (Project)/AGM (Project), DGM of LM&R / Recovery, and the Regional Manager’s concern. The Managing Director leads the Regional Loan Sanction Committee. The Panel sanctions loans. The RLSC’s powers of sanction are set out in Annexure-VII. So, RLSC is authorized authority to approve Bill finance initiatives for a sum of up to Rs.3000 lakhs.
Bill Finance services are shown here to conduct our business (e.g.) the TNEB Supply Bills (provision of ASCR Conductors / AAAC condors) Transformers. So, we send the details of our business, financial statements, and other required information to the following columns and your information appendix. However, we assure that the information provide here is accurate to our knowledge and belief. Also, you get and confirm information, visit the TIIC portal.
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