IDLS Scheme – Disbursal formalities with SIDBI

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No.CLE / ILDP / Infrastructure / 2011-12
7th February, 2012

Members of the Council

Dear Members,

Sub: IDLS Scheme – Disbursal formalities with SIDBI – reg.

As you are aware, the Eleventh Five Year Plan period 2007-12 will come to an end by March 2012, and in this regard, the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, Government of India has earlier fixed a deadline of 15th January 2012 for those cases which have been issued Sanction Letters under the IDLS Scheme, and which are kept pending for disbursement with SIDBI due to various reasons, and the applicants /SIDBI was advised to complete all the formalities for disbursal of unpaid grant, failing which the sanction to the extent of unpaid portion of the grant will be cancelled. There have been few representations from the industry on various grounds such as seeking copies of the Sanction Letters, seeking extension of deadline citing their own reasons. The Council has taken up the matter at macro level with the DIPP in the review meeting of the sub-schemes of ILDP held on 3rd February 2012 and highlighted the concerns of the industry.

In this regard, the Council would like to inform that the DIPP has now extended the deadline from 15th January 2012 to 28th February 2012, and until 28th February 2012, the SIDBI was advised to accept the claims of the units to whom Sanction Letters have already been issued and whose cases are kept pending / formalities have not yet been completed.

The DIPP has clarified that the purpose of giving the timeline for completion of all the formalities, is an administrative strategy to expedite the claim for release of sanctioned investment grant to the applicants as less than two months have left in completion of the 11th Five Year Plan period i.e, completion of the sub-scheme of IDLS Scheme.

The DIPP has requested the PIUs- CLRI & FDDI to communicate the approved eligible units to submit claims to SIDBI upto 28.02.2012 and to expedite the same at regular basis. SIDBI was advised to receive the claims from the units whose cases are pending with SIDBI.

Accordingly, the Council would request the units who have been issued with the Sanction Letters by the DIPP and for which disbursement of investment grant is pending, to immediately approach SIDBI and complete the formalities at the earliest, well before the deadline of 28th February 2012.

In case of any difficulty, the Council would suggest the units to depute their representative with all relevant records / documents to meet the officials of PIUs – CLRI (pertaining to tanneries) & FDDI (pertaining to leather product segments). Similarly, the units may depute their officials with relevant records /documents to meet the officials of SIDBI / Bank and carry out the formalities as early as possible before the deadline of 28th February 2012, which will lead to disbursal of grant by SIDBI.

Kindly give top most priority to this matter.

With warm regards,
Yours sincerely,

Ali Ahmed Khan
Executive Director