IDLS Scheme – Investment Grant – Formalities with SIDBI for disbursements

No.CLE / ILDP / IDLS / 2012-13
May 4, 2012

To:

All Members of the Council

Dear Sirs,

Sub: IDLS Scheme – Investment Grant – Formalities with SIDBI for disbursements

This is to inform that the 24th Meeting of the Steering Committee was held on 3rd May 2012 under the Chairmanship of Shri D V Prasad, Joint Secretary, Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India, wherein the IDLS Scheme was taken up for discussion. During the discussions, it emerged that the disbursement of investment grant are less than the grant sanctioned by the DIPP vide its Sanction Letters. An indication is given by SIDBI that the applicants are not approaching SIDBI and hence the lesser disbursal than the sanctioned grant, and as per the procedures SIDBI applies to the DIPP for release of grant, only based on the calculations for the completed cases.

(Please also refer to CLE Circular dated 07.02.2012 wherein units were advised to approach SIDBI and complete the formalities, and also the letters issued by FDDI and CLRI in the same matter)

In this regard, the Council wish to inform that if your firm has received Sanction Letters from the DIPP in the recent past, and the disbursement for the amount due are not yet been received (excluding the installment disbursement cases which would be released only as and when it is due), the Council would request you to approach the concerned branch of SIDBI immediately with copies of Sanction Letter and all relevant documents.

You may approach SIDBI in the following manner:

a) Through the lending banks if the case is loan financed.
b) Through the bank in which working capital Account or current Account is maintained if the case is self-financed.

As you are aware, after receipt of Sanction Letters from DIPP, an Agreement has to be entered into between the applicant and SIDBI, and SIDBI will undertake inspection visit to applicant’s unit. After these processes are completed, the SIDBI will release the investment grant to the applicant based on fund availability at its disposal.

As a recipient of Sanction Letters, you may take immediate further action in the matter by approaching SIDBI at your location as described above and complete all required formalities. You may depute your personnel with all required documents to the bank concerned, and to the SIDBI. This will enable the SIDBI to include your case for disbursements and include your firm in its ‘request for release of grant’ to the DIPP.

For any issues in this process, you may bring the same to the notice :

PIUs – CLRI (if the issue is related to tanneries) E-mail : idls@clri.res.in
FDDI (if the issue is related to leather products) E-mail :aritra@fddiindia.com
SIDBI Head Office : E-mail : rrarya@sidbi.in

under copy to CLE Head Office. We would also suggest you to always mark a copy of your mail to concerned CLE Regional Offices for field level coordination.

With warm regards,

D Saalai Maraan
Executive Director
Council for Leather Exports