Policy Guidelines for Selected Industries
(Schedule 1/6B )
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Disbursements Repayment Contact RFC

PRODUCT POLICY
Food and Food products  
Ice Factory Application should not be accepted for setting up ice factory for less than 10 TPD.
Cold Storage Applications for setting up cold storage of above 2000 MT capacity may be accepted and processed if sufficient scope is found in the area.
Dairy Sector Dairy sector Project fulfilling the norms of Milk and milk products order,1992 regarding installed capacity of proposed Dairy unit for handling Milk and Milk products only be considered for finance. (Extract of relevant guidelines are given below)

Registration:

1.     On and from the date of commencement of this order no person shall manufacture or carry on business in milk or any milk products nor create any manufacturing facility for the business, unless such person has made an application in the form specified in the first schedule alongwith the prescribed fee to the registering authority for obtaining the registration certificate.

2.     The provisions contained in sub-paragraph (I) shall apply to such person who handles or is equipped to handle or who has in the establishment or unit under his ownership or control (or where he has more than one such establishment , all the establishment put together) installed capacity for handling milk in excess of ten thousand litres per day, or milk product containign milk solids in excess of five hundred tonnes per annum.

3.      Promoters contribution would not be less than 40% of the project cost.

4.      Collateral security of immovable property having MRV not less than term loan would be furnished.

The relaxation in collateral security (not below 50% of the loan amount) be considered by the CMD.

Relaxation in the norms of collateral security, if any requested be referred to HO only if the BM/DGM (sanctioning authority as the case may be) is satisfied about viability of the project and security of loan giving full justification for further consideration of the PCC/CMD.

Distilleries i) No new distilleries may be permitted in Alwar & Jaipur districts.
ii)All distilleries will be asked to ensure recycling of treated effluents.
iii)No commitment by RIICO or any other agencies may be made by way of land or loan on any distilleries/ Breweries without prior approval of the committee of Secretaries and the Govt.
Textiles  
Textile printing Loan applications may be accepted only if these are supported by NOC from Water Pollution Control Board.
Niwar Manufacturing Units No more applications for setting up Niwar Manufacturing units in Bhilwara District will be entertained.
Spinning of Yarn a)Financial assistance can be considered on a very selective basis to new spinning units basically rotors. Such proposals should satisfy the usual norms of viability and should be based on Debt Equity Ratio 1.5:1. Adequate availability of waste cotton for such units has also to be ensured.
b)Expansion proposals from existing cotton spinning units may be considered for enabling them to reach upto 25,000 spindles and achieve better viability in their operations provided the proposals satisfy Debt Equity Ratio 1.5:1.
c)Financial assistance to new units for spinning of shoddy yarn/ woolen yarn based on worsted system can be considered.
Zero Zero Felt Application may be accepted subject to NOC from RPCB on Zero Zero Felt with composite unit.
Ready-made Garments A cautious approach be adopted for scrutiny of the promoter in financing the ready-made garments industry in the State. The capability and bonafides of the applicant should be carefully examined during the course of appraisal of the project. In case the unit is set up in rented premises, collateral security as per norms prescribed should be insisted upon and no relaxation should be allowed.
Process Houses Financial assistance for textile process houses at Bhilwara only shall be considered on the stringent norms as under:
i)   Higher promoters ratio 1:1;
ii) Adequate security including collateral may be ensured.
iii)Project should be promoted by well experienced promoters.
This guideline shall not be applicable for cases covered under RTUF scheme.
Cotton weaving units Application for setting up cotton weaving units (power loom units) may be accepted /processed for financial assistance to experienced entrepreneurs with sound financial background with adequate collateral security.
Printing Paper and Wood Products  
Printing Press

I) Application for setting up new and improved technology of printing press like DTP system, offset printing etc. may only be entertained in Jaipur, Jodhpur, Kota,Udaipur, Bikaner, Alwar etc.
II) Only latest technology Printing Machine should be considered on selective basis to the experienced promoters having sound financial means with following terms:

  1. Security Margin: 50%
  2. Promoters contribution: 50%
  3. Collateral security: Equal to loan amount.

All  the loans in this sector shall be sanctioned at HO till the recovery position improves substantially.

Colour Lab

May be financed after ascertaining adequate scope and 100% collateral security is furnished.

Chemicals & Pharmaceuticals  
Pesticide Formulation No application for setting up pesticides manufacturing should be entertained unless NOC from Director of Agriculture, Government of Rajasthan is produced. While financing such projects adequate collateral security should be obtained.
Non Power Operated Acid Slurry/
Detergent Formulation		 Such units will be assisted only when group of entrepreneurs opt on composite basis and approach corporation for assistance.
Pharmaceutical units i) Restrictive financing considering 40% security margin and on the condition that the unit is not being set up in rented premises.
ii Clearance from Directorate of Medical and Health (Drug Control Organisation) is required before disbursement of last 20% of the sanctioned loan.

iii Guidelines of pharmaceutical units may also be applied for Homeopathic and Ayurvedic Medicines.

iv While financing such projects adequate Collaeral security should also be obtained.
Industrial Chemicals Financing to industrial chemical manufacturing  units may be considered only to experienced and financially sound promoters  with the codition that loan will be secured  by 100 %  considering value of prime security (L&B)and balance by mortgageable  and marketable collateral security
Mines and Mineral Products  
Tractor Compressor a)A cautious approach be adopted for further financing of tractor compressor units at Bhilwara, Udaipur and Sirohi in particular and at other places in general.
b) Preference should be given to those who either have base units of their own or have mining lease of sufficient size ( say 6,000 sq. mtrs.) in their name.
c) Collateral security of mortgageable and marketable immovable property having value not less than the loan amount be taken in each case in addition to hypothecation of tractor compressor financed by RFC.
Refractories Application may be accepted for financial assistance to the specialised type of sophisticated refractory units manufacturing high alumina bricks, silica bricks with high conduction carbon refractories, zircon & ceramic fibre products. However, further financing will be considered on selective basis with adequate collateral security and that too conforming ISI specification , sound entrepreneurship and investible capabilities.
Marble cutting The minimum promoter's contribution shall be 33% of the project cost and the debt equity ratio should not exceed to 2:1.
Marble Mines would not be condition for establishing a marble processing unit but possessing of a mine of adequate marble reserves of good quality would be considered to be positive aspects for the project.
Hydrated lime and quick lime i) Loan for hydrated lime units may be considered normally within 50/60 Kms. radius where sufficient raw material deposits of requisite grade are available.
ii) No application is to be accepted in Udaipur Region.

iii) While financing such project adequate collateral security should also be ensured and it should also be ensured that good quality of raw material is available in plenty.

Mineral Grinding

i)No application for financial assistance for setting up of mineral grinding units (marble chips and powder) in Alwar district be accepted unless backed by 100% Mortgageable and marketable collateral security on merit of the case.
II)Financing to mineral  grinding units other than Alwar District (Marble chips and powder) may  be cosidered to experienced and financially sound promoters with need based
collateral security.

Granite Slabs

Granite units for manufacturing of slabs (2X8 & above) based on Kerosene (excluding slabs manufactured by gangsaw) may be considered for financial assistance on merits with 100% collateral security.

Metal Products
Auto leaf springs In view of substantial number of units already financed by the Corporation, no application for auto leaf spring units may be accepted.

Application from such units who are having satisfactory marketing tie up or who have been granted ancillary status by leading vehicle manufacturing units may continue to be accepted. Before registering such application prior reference to be made to HO. However, while financing such project 100% collateral security should be obtained and proper scope should also be ascertained.
SS rolling Mill

The minimum promoter's contribution shall not be less than 50% of the project cost. In case promoter is not in a position to bring the required contribution then the collateral security equal to the value of double the amount of short fall in the promoters contribution shall be insisted upon. However, in no case the PC shall be less than the 40% of the project cost. For relaxation in the above norms, if any, in a particular case,the same would be forwarded by the concerned branch to HO for consideration forwarding the full details of the case giving reasons and justification in support of his recommendations for the relaxation required in a particular case. For existing units, the cases would be examined/appraised subject to the norms followed under Normal Term Loan scheme.

Re-rolling mills(Mild steel)and induction furnaces Financing to steel rerolling mills(mild steel) and induction furnnaces may be considered only to experience d and financially sound promoters with need based collateral security on individual merits of the case
Industrial Fasteners The loan application may be considered for financing outside residential area and not in rented premises.
Recovery of Zinc From
Zinc Ash unit		 Application for extending financial assistance for recovery of zinc from zinc ash and brass ash units may be accepted provided, promoters have sufficient experience in the line. They have firm arrangements for continuous technology consultancy and assurance for non interrupted supply of power and raw material.
Grinding media Application only from the units which propose to go in for product mix particularly with forged automobile and engineering components along with grinding media with adequate collateral security may be considered.
Metallic yarn Application for setting up Metallic yarn units are not to be accepted except at Khandela, Distt. Sikar from entrepreneur who are established in Metallic Yarn trade but adequate collateral security is to be obtained.
The Plant and equipments including VCR, Deck,CTV and Recording Deck The application for financial assistance to such units accepted at branch shall be forwarded to HO for further processing.
Others  
Drilling bits Applicant desiring of setting up this type of industry shall be offered existing sick/ closed units available for sale with the Corporation.
Transformer units No new application for manufacturing and repair of transformer is to be registered for Jaipur and Dausa Districts unless backed up 100% collateral security subject tono restriction of the state government.
Guar Gum A) The Corporation will adopt a cautious approach for financing the guar gum projects.
B)In case of split unit:
For new units: Minimum promoter's contribution may be kept at 40% and minimum 50% collateral security will be required.
For relaxation in the above norms, if any, in a particular case, the same would be forwarded by the concerned branch to the HO for consideration, forwarding the full details of the case giving reasons and justification in support of his recommendations for the relaxation required in a particular case.
For existing units:
The cases would be examined/ appraised subject to the norms followed under Normal Term loan Scheme.
C)In case of powder manufacturing units: In the case of powder manufacturing units the decision should be taken at HO level as per the existing guidelines.
Brick Kilns No new application for setting up Brick Kilns having moving chimneys will be entertained. Applications for Brick Kilns having pollution control systems and fixed chimneys along with NOC/ consent from RPCB only may be accepted having adequate collateral security.
Plastic Processing Units

(i) The unit promoted by experienced persons in the line with sound financial base shall be considered only in the potential areas like Jaipur, Udaipur, Jodhpur, Kota and Alwar Districts.
(ii) The projects having cost estimate of Rs. 50 Lacs and above based on latest technology plastic processing machines with higher standard of automations and performance shall be considered.
(iii) However, proposal of expansion/ modernisation of existing units shall be considered irrespective of project cost, on their merits. OR
If marketing scope is found at a particular place and the promoter is prepared to provide 100% collateral security for term loan on fixed assests and 150% for WCTL (in case the loan is applied under SWS), such projects may also be financed within the sanctioning powers of Branch Office / RO.

Dall & Oil Mill

a)No financial assistance should be allowed for Dall and Oil mill project for smaller loans upto Rs. 5.00 Lacs .No such unit should be financed in rented premises
b)Beyond Rs. 5.00 Lacs in all such loans Promoter's contribution shall not be less than 50% of the project cost.
c) Collateral security equivalent to amount of term loan for fixed assets and 150% of the WCTL shall have to be furnished  besides primary security .

Hotels & Restaurants

A)For Hotels

i)   Financial assistance may be considered upto a term loan of Rs. 25.00 lacs subject to the condition that minimum marketable and mortgageable collateral security of 25% of the loan amount shall be obtained.
ii) The location of the hotel should be at marketable place.
iii)  For the loan amount exceeding Rs. 25.00 lacs, the corporation may continue to finance as per existing norms but only to financially sound entrepreneurs ( sound net-worth) having relevant background and experience.

B) For restaurants:

i)  No financing in rented premises shall be considered.
ii)  Financing upto a term loan amount of Rs. 15.00 lacs may be continued as per existing norms with the condition that marketable  and  mortgageable collateral security of  atleast 25% of the loan amount shall be furnished.
iii)  For the loan amount exceeding Rs. 15.00 lacs, the corporation may continue to finance as per existing norms with need based marketable & mortgageable collateral security.

Note: The above policies are framed from time to time and are subject to review and change at any time by the Corporation at its sole discretion without any notes. The above guidelines will be applicable on new units and would not be applicable in general on cases of existing units going for expansion unless it is specifically provided in the guidelines itself as to its applicability on expansion cases as well. These guideliness would not be applicable on the good borrower and to the unit promoted by existing borrowers looking satisfactory payment behaviour with the Corporation.