IREDA NCEF Refinance Scheme

1. Should have been making profit for the last 3 (three) years.
2. Should not have accumulated losses.
3. Should be viability affected in terms of tariff, abnormal fuel cost escalation issues and force majeure conditions
4. Gross Non-Performing Assets as a percentage of Gross Advances should not exceed five percent for the entire portfolio.
5. Capital Adequacy Ratio should be in conformity with the prescribed regulatory norms.
6. Operational grid connected power generation projects should have an installed capacity of 10MW when it comes to combustion-based Biomass power projects. For Small Hydro power the installed capacity should be up to 5 MW.
7. The project should be revived after the utilization of NCEF refinance loan
8. Projects should have been commissioned between 1 April 2003 and 31 March 2013.
9. Plants should have an operational history of at least 2 years after the commissioning of the project. The 2-year average PLF should be at least 20% in the case of Biomass Power projects and 15% when it comes to Small Hydro Power (SHP) Projects.
10. The project should be revived within 6 months after the approval of the refinance loan.
11. The project should have a minimum DSCR average of 1.1 after considering IREDA refinance amount.

Required Documents for IREDA NCEF Refinance Scheme

In order to seek refinance from IREDA, scheduled commercial banks or financial institutions need to submit the following documents:

1. Copy of the resolution passed by the Board of Directors or any other committee appointed for the purpose or a specific authorization from its competent authority to avail refinance
2. Specimen signature of the officials
3. Agreement for availing refinance from IREDA under the IREDA NCEF Refinance scheme

Interest rate for IREDA NCEF Refinance Scheme

The rate of interest on the refinance from IREDA is 2% per annum.

Repayment Tenure

The repayment tenure for the refinance amount should be co-terminus with the repayment period of banks or financial institutions. The maximum repayment period shall be 10 years apart from 6 months of grace period from the date of release of the refinance amount.

Payment of Interest

The interest shall be payable from the date of the cheque or date of debit of the amount to the account of IREDA by NCEF. Interest will be calculated on a daily basis and charged at quarterly rests. When it comes to calculation of interest, a year will be considered as 365 days irrespective of whether the year is a leap year (i.e. 2020). The due date for payment of interest shall be the last date of each calendar quarter. For delayed payments, an interest of 12% per annum shall be levied on the amount in default in addition to the applicable interest.