- OBJECTIVES OF THE LOAN SCHEME
The Environmentally Friendly Solution Revolving Fund Loan Scheme has been introduced to provide low cost loans to assist industrial enterprises in finding solutions to the environmental problems, such as industrial pollutions caused by their manufacturing process and energy consumption, waste minimization, resource recovery and saving and pollution control and abatement.
- PROJECT AREA
Loan scheme is implemented in all the districts in the Island.
- PROJECT PERIOD
- Project commencement - 28.09.2008
- Project Termination - 30.06.2014
(If the expected loan amount of Rs.1000 Million gets fully exhausted within this period, loan programme will cease to operate from thence.)
- TOTAL LOAN EXPOSURE
Rs.1000 Million
- OPERATING INSTRUCTIONS OF THE LOAN SCHEME
- Overseas Economic Cooperation Fund of the Government of Japan (OECF) - Provides financial facilities
- National Development Bank - Issuance of Operating Instructions and reimbursing of refinance.
- PROJECT SECTORS FOR WHICH LOANS ARE PROVIDED
- Equipment for end-of-pipe treatment and equipment that will lead to reduced emissions or to a lower production wastes by the enterprises thereby enabling them to comply with the National Environment Standards.
- Equipment that leads to substantial reduction in the use of resources by existing equipment and machinery, or the phasing out of hazardous substances.
- Equipment that will substantially improve the safety of work places, especially with regard to the exposure of workers to potentially hazardous substances or noise etc.
- Investments related to relocation (excluding purchase of lease of land) of highly polluting industries to special estates that are equipped with waste treatment plants, and investments by enterprises that set up and operate such treatment plants.
- Equipment for the monitoring of pollutants in connection with (6.1), (6.2), (6.3) or (6.4) above.
- Import duties and other taxes, purchased or leased land, or other real property, administrative and indirect items will not be financed from the E-Friends (Revolving) Fund.
- Investments in enterprises producing or processing asbestos or other hazardous substances, and investments promoting the use of ozone layer depleting substances such as Choloro-Fluoro Carbons are not eligible for funding from the E-friend (Revolving) Fund. The only exceptions are investments that lead to an elimination of the use of asbestos, hazardous substances or Choloro-Fluoro Carbons
- ELIGIBILITY OF APPLICANTS
- Should be a financially viable Industrial Enterprise including sole proprietorships, partnerships, private limited liability companies, and co-operative societies which posses a business registration certificate.
- Applicant should not be a defaulter or a guarantor of a defaulter, of loans to any financial institution.
- Applicant should be within the age group of 18-55 years.
- Applicant should be able to provide with required securities.
- All the projects that apply for loans under this loan scheme should be financially feasible and economically viable.
- Should be able to conform to the regulations and standards of the National Environmental Act.
- MAXIMUM LOAN LIMIT
Maximum loan limit per eligible industrial enterprise is Rs.20, 000, 000/=
- REPAYMENT PERIOD
While the maximum repayment period of a loan shall be 05 years, the minimum period is 3 years.
(Since the project finalization date is 30.06.2014, Repayment period should be adjusted so as to be an earlier date than 30.06.2014. Here the attention should be drawn to the fact that the minimum repayment period is 3 Years.)
- SECURITIES
Securities acceptable to the Bank.