PROPOSAL FOR FINANCIAL ASSISTANCE

 

 

IDBI and IFCI had devised a common application form for seeking project finance assistance and had also drawn up detailed explanatory notes for guiding entrepreneurs to fill up the application form. Now‑a‑days, these institutions do not insist for common loan application. The applicant is required to furnish complete details of the project including financial assistance needed in the project report itself  which should be forwarded to the lending institution along with request letter. For project screening and sanction, IDBI uses a Form known as Project Loan Application Form (Appendix 4.1). Project report should be prepared in such a way so as to facilitate furnishing of information in Project Loan Application Form.

 

Project Loan Application Form of IDBI

 

Project Loan Application form of IDBI starts with 'Background Information' required to be furnished on the following matters

 

(i)         Name of the Industrial concern.

(ii)        Constitution of the applicant company and the sector to which it belongs.

(iii)       Industrial Classification.

(iv)      Date of Incorporation/Registration/Commencement of Business.

(v)       Addresses of Regd. Office, Controlling Office and Project Location.

(vi)       Project Profile.

 

Background Information is followed by Parts I to V which need to be filled up on the following lines.

Part‑I requires information in respect of promoter/company as under:

 

(i)         Promoter profile.

(ii)        Company background, in case of existing company.

(iii)       Management Structure.

(iv)       Shareholding pattern of the company on a particular date.

 

Part II requires furnishing of technical information in respect of Project. It includes information on technical arrangements, location and site, inputs of production and implementation schedule.

 

In Part III, information regarding market i.e. demand outlook, supply outlook, market potential both in respect of domestic and global markets and selling arrangements is furnished.

 

In Part IV, financial information i.e. cost of project means of financing, sources and uses of funds and performance indicators for the first 5 year's of operation is furnished.

 

In Part V, information with regard to socio‑economic impact of the project i.e., economic considerations, social considerations, environmental considerations and status of Governments consents.

                                               

PROJECT REPORT

 

Since the appraisal of the project is carried on the basis of information given in the project report as well as annexures attached thereto, it is pertinent that complete and precise information is given in the first instance itself so as to avoid any delay in processing. Information in the project report should be so structured that no difficulty is faced while completing the project loan application form. However, it must be clearly understood that the scope of information to be furnished in project report is not limited to filling of loan application form but it must be as detailed as possible covering each and every aspect of the project, howsoever, minute it may be.        

 

The proposal is treated as complete only after the entrepreneurs have obtained basic Government clearances, such as Letter of Intent, C.G. clearance and approval for foreign collaboration, etc., wherever applicable, and have also resolved, in some cases, certain basic issues such as financing pattern for the project, capability of promoters to raise their contribution, selection of size for the project, suitability of process technology to be adopted, availability of requisite quality and quantity of raw materials, availability of adequate power particularly in the case of power intensive projects and market aspects, wherever market may be a constraint or in case where bunching of applications is involved. Some of these basic issues are of such relevance in the case of certain projects that they need to be resolved before taking up detailed appraisal so that it does not become infructuous.

 

List of various particulars to be given in project report is given below

 

1.         General details about the industrial concerns, projects and financial assistance applied for.

2.         Bio‑data of promoters with past history.

3.         Particulars of the industrial concern comprising

 (i)        A brief history.

 (ii)       List of subsidiaries.

 (iii)      List of holding company.

 (iv)      List of other group companies where subsidiary/holding relationship does not exist.

 (v)       Directors' bio‑data.

 (vi)      Full details of revaluation of assets together with reasons therefor.

 (vii)     Bio‑data of key technical and executive staff.

 (viii)    Existing long‑term and short‑term borrowings.

 (ix)      List of shareholders owning or controlling 5% or more of equity shares.

 (x)       Note on company's tax status.

 (xi)      Manufacturing facilities.

 (xii)     Particulars of production and sales.

 (xiii)    Locational advantages.

 (xiv)    Existing requirement of various utilities and services.

 (xv)     Details of exports and incentives

 (xvi)    Details of insurance

 (xvii)   Details of pending litigation.

(xviii)    R & D activities.

           

4.         Particulars of the project comprising

 

(i)                  Capacity.

(ii)                Process.

(iii)               Technical arrangements.

(iv)              Management

(v)                Locations of land

(vi)              Building.

(vii)             Plant Machinery.

(viii)           Raw material

(ix)              Utilities including power, water, steam compressed air fuel etc., transport.

(x)                Effluents.

(xi)              Labour.

(xii)             Quarters for labour housing.

(xiii)           Schedule of implementation.

(xiv)           Other projects of the concern.

 

5.                                                                   Cost of the project.

6.                                                                   Means of financing.

7.         Marketing and selling arrangements.

8.         Profitability and cash flow.

9.         Economic consideration.

10.        Government consents.

11.        Letter addressed to the banker of the applicant authorising the bank to divulge all information about the promoter to financial institutions.

12.               Particular of existing debentures and long‑term secured loan.

13.               Particulars of existing cash credit/overdraft arrangements.

14.               Distribution of shareholding.

15.               Particulars of factory and non‑factory building

16.              Particular of machinery imported or to be imported for the project

17.               Particulars 'of machinery already acquired/proposed to be acquired from indigenous sources under the project

18.               Requirements of raw materials, chemicals and components.

19.               Estimated cost of the project.

20.               Estimate of contingency provision.

21.               Margin money for working capital.

22.               Means of financing

23         Proposals for raising share capital, loans & debentures.

24         Source of funds in respect of expenditure already incurred.

25.        Estimate of cost of production.

26.        Estimates of working results.

27.        Estimate of production and sales.

28.        Calculation of wage and salaries at maximum production.

29.        Unit cost of production.

30.               Cash flow statement.

31.               Projected Balance Sheet

 

The following documents are normally required to be enclosed with the proposal for financial assistance.

 

1.                   Copy of Memorandum and Articles of Association/Bye Laws/ Partnership deed.

2.                   Certified copies of Memorandum and Articles of Association of the promoter company.

3.                   Audited balance sheets and profit & loss accounts for the last five years of the promoter company.

4.                   Copy of agreements, if any, entered into among the promoters.

5.                   Copies of the audited balance sheets and profit and loss accounts for last five years of the holding company.

6.                   Certified copies of agreement with the Managing Director/Whole time Director/Chief Executive.

7.         Certified copies of approval of the Central Government for the appointment of Managing Director/Whole time Director/Chief Executive.

8.         Certified copies of audited balance sheets and profit and loss accounts for the last five years together with proforma of balance sheet and profit and loss account of as recent a date as possible.

9.                   Organisation chart showing lines of authority.

10.               Copy of the project report/feasibility, if any, copy of the process flow chart with material balance, utilities and process parameters.

11.               Copies of published brochures highlighting the activities of the collaborator and balance sheets for last three years.

12.               Copy of collaboration agreement.

13.               Copy of Government approval for the collaboration.

14.               Copy of Government approval for availing of the services of foreign technicians.

15.               Copy of published material on consultants.

16.               Copy of agreement with consultants.

17.               Copy of Government approval in case of foreign consultants.

18.               Proposed organisation chart indicating the lines of authority.

19.               Copy of Sale/Lease case Deed of land.

20.               Copy of soil test report.

21.               Copy of Government order converting the land into industrial land, if applicable

22.               Location map.

23.               Site plan showing the contour lines, the internal roads, power receiving station, railway siding, tube wells etc.

24.               Master plan showing location of building roads, power receiving station, railway siding tube well etc.

25.               Equipment layout plan of building indicating the flow of material.

26.               Copy of agreement with architects.

27.               Copy of published write up/brochure on architects.

28.               Layout of the plant and machinery indicating the flow of material.

29.               Copy of agreement for mining lease.

30.               Experts' report regarding the quantity and value of the reserves.

31.               Copy of letter of sanction for power.

32.               Copy of agreement with electricity board.

33.               Copy of electrical layout of the plant.

34.               A note on power generation, demand and supply in the State present and projected.

35.               Layout for the water system.

36.               Copy of the letters of sanction of water by municipal/local authorities.

37.               Copy of the water analysis report.

38.               Layout of the steam system.

39.               Layout plan for compressed air, fuel etc.

40.               Copies of letter of allotment of coal/furnace oil from the concerned authorities.

41.               Copy of approval from concerned authorities for the proposed arrangements for effluents.

42.               PERT Chart.

43.               Copies of letter sanctioning financial assistance.

44.               Copy of market survey reports, if any, conducted by the company or independent consultants.

45.               Copy of the agreement with selling agents.

46.               Copies of licences/consents etc. received from the Government.

47.               Copies of letter from suppliers agreeing to supply the companies' requirements.

48.               Copies of import licence for items to be imported.

49.               Certified copies of audited balance sheets and profit and loss accounts for the last three years in respect group          companies including subsidiary/holding companies.

 

EXPLANATORY NOTES ON CERTAIN CRUCIAL ASPECTS OF PROJECT REPORT

 

1. GENERAL IDEA ON PROJECT AND PRODUCT

 

·                     Give a general idea of the project, such as the product, capacity and any outstanding features, whether the product is being produced for the first time in the country and/or involves technological innovation or is export‑oriented/import‑substitutive or defence‑oriented or it is promoted by technical entrepreneurs or based on locally available raw materials. Indicate clearly the nature of the project i.e. whether‑it is a new project or an expansion scheme or a modernisation and/or diversification scheme.

·                     The capacity indicated in the letter of intent or industrial licence should ordinarily tally with the capacity proposed to be installed. If there is a difference, explain the reasons there for in respect of each of the products being manufactured/proposed to be manufactured by the company and steps taken/proposed to be taken to increase the licensed capacity.

 

2. PROMOTERS

 

·                     The institutions would like to have full information on the promoters, such as age, education qualifications, fields of specialisation, if any, and experience in industry or business etc. If the promoters are to be considered as technician entrepreneurs, the reasons for doing so may be explained. Tile information may be furnished separately in respect of each of the main promoters. In the case of joint sector projects, besides information on the private sector promoters, brief write‑ups on the activities of the SIDC/SIIC associated with the project may be furnished together with copies of annual reports and accounts for last three years and other relevant published material.

·                     Particulars of all the directors of the applicant concern (i.e. tile company for which assistance is sought) may be given in the following Performa :

 

Name of the                  Age                  Address                        Name of companies/

Director                                                                                    firms in which interested

                                                                                                            and nature of  interest

 

·                     The institutions would like to have the bankers' report oil the applicant company on each of the promoters and in respect of all the companies/ firms with which they are actively associated i.e. as Chairman, Managing Director, Whole‑time Director, Trustee, Managing Partner, Partner etc. For this purpose, the letter(s) may be completed in all the above cases and addressed to the bankers before submitting the application. authorising them to disclose the relevant information to any or all of' the financial institutions, such as IDBI/IFCI/LIC/UTI/GIC. Copies of the letters to banks are to be enclosed  with the proposal.

 

3. PARTICULARS OF THE INDUSTRIAL CONCERN

 

·                     Give a brief history of,' the concern including any changes in names, business management etc. Also indicate any mergers, reorganisation etc. which took place in the past.

·                     If any of the assets have been revalued or written off at any time during the existence of, the company furnish full details of such revaluation together with reasons therefor.   

·                     Describe manufacturing facilities separately at each plant and furnish figures of licensed capacity, installed capacity, production and sales of each major product/product group during the last five years.

·                     Give details of any pending litigation either by or against the company.

·                     In case of new companies which have approached the institutions for assistance at a later stage when the project has already made substantial progress in the implementation of the project, as far as possible same details which are applicable to existing industrial concerns may he given.

 

4. PARTICULARS OF THE PROJECT

 

Furnish as detailed information as is possible on the project as the basic information will assist the institutions to assess the viability of the project. It is likely that some arrangements have already been made towards project implementation, such as acquisition of land, appointment of consultants etc. In such cases, give full particulars of the arrangements made along with copies of relevant documents. Wherever the arrangements are not finalised, give details of the arrangements proposed. It may be ensured that due consideration has been given to the various aspects of project implementation and operation and that satisfactory arrangements have been made therefore.

 

A. Capacity

 

·                     Give the capacity in respect of each of the proposed products.

·                     Indicate 'Maximum Production Envisaged" based on the maximum production assumed in the profitability statements etc. Also indicate the number of shifts on the basis of which this capacity is assumed. In case the installed capacity is more than the licensed capacity, steps taken/proposed to be taken for regularising the position may be indicated.

·                     When a new unit is set up, the capacities of various sections of the plant should normally match the overall capacity of the unit. Indicate the capacities proposed to be installed in the major sections and also furnish details of machine loading, process cycle time, assembly line balancing and other particulars. If the capacity in any section is in excess of the overall capacity, explain the reasons therefore and justify the need to install such excess capacity. Specifically indicate that the industrial licence covers the excess capacity.

·                     In the case of engineering/automobile and other products give details of proto‑type development and testing/approval, if any, required to be obtained from Government or other bodies. Indicate ISI or other relevant specifications to which the product would conform.

 

B. Process

 

·                     Name a new companies using the same process as proposed by the applicant and also elaborate on the major technical and/or other flired by the companies using the process.

 

C. Technical arrangements                                                                           

 

·                     Technical arrangements include the arrangements made for obtaining know‑how, basic design engineering, detailed engineering, selection of equipment suppliers and contractors, construction/erection supervision, trial runs and staff. The company itself and part through collaborators and consultants might undertake part of these jobs. Explain in detail the arrangements made proposed to be made for each of the services required for the project. Furnish details of the collaborators and consultants.

 

D. Management

 

·                     Give separate write‑ups on the organisational set‑up during the construction stage and the operational stage.

·                     Give the bio‑data of senior personnel (especially of departmental heads and above) already appointed and the minimum qualifications and experience expected of other senior personnel proposed to he recruited. A chart showing the organisational set‑up envisaged when the company goes into production may be attached. The chart should indicate the functions of each department, the names and designations of officials (if appointed) heading the departments etc. and the strength of the supporting staff.

 

E. Location

 

·                     While selecting the site for the project, the advantages and disadvantages of the site might have been taken into consideration. Enumerate in detail the advantages and disadvantages which were weighed by the unit before selecting the site and also highlight each of the factors which were considered most advantageous for the project, such as good transport facilities, nearness to market, availability of raw materials, water, power, labour etc. For instance, in explaining the transport facilities that might be available for the project, describe the national and state highways passing nearby, specifying the distances from the site of important business centres, nearest railway station, whether the railway line is on the broad gauge or on metre‑gauge etc. Furnish data/information collected by the company to establish the suitability of the site with reference to rainfall, floods, cyclones, earthquakes etc.

·                     Describe in detail the topography of the land elevation with reference to nearest highway etc.

 

The area of land required for the project may be given separately for (a) factory building, (b) ancillary buildings, (c) open storage space, (d) housing colony, (e) area required for future expansion, and (f) any other purpose to be specified. The following information may be furnished in this respect :

 

(a)        Total area and cost therefore, including conveyance charges. If the cost is higher than the current market price, explain the reason for such variation.

(b)        When the land is acquired/proposed to be acquired from a number of owners, indicate the area and the cost of each plot.

(c)        It is likely that part of the cost of land is payable in deferred instalments or in kind, such as by issue of shares. Indicate the amounts paid in different forms such as cash, other than cash deferred payments etc. In case the land is taken on lease basis, give separately the amount of initial premium and the annual lease rent

(e)        If the land is acquired/proposed to be acquired from any of the promoters/directors of the company or their relatives, give full particulars, such as the relationship, area of plot, cost etc. Also indicate the date of acquiring and price paid and expenses incurred by the promoter/director etc.

(f)        If the land for the project has been earlier used for agricultural purposes, it may be necessary to obtain the permission of the State Government for converting it into non‑agricultural land. Contact the Industrial Department of the State Government and obtain the approval of the competent authority and enclose a copy of such approval.

 

F. Buildings

 

·                     It may be explained how the buildings are proposed to be constructed i.e. whether through a contractor, by the unit's own organisation etc. In case the buildings are to be constructed through contractors, describe the process of selection of the contractor(s) and the reasons for selecting the contractor(s).

·                     If no architect is proposed to be appointed, please give reasons why such an appointment is not considered necessary. While giving the pas experience of the architects also give details of important work handled by them and the fees charged therefore.

 

G. Plant and Machinery

 

·                     Provide details as to how the (i) machinery/equipment, and (ii) machinery/ equipment suppliers have been selected. The equipment might have been selected on the advice of collaborators, turn‑key contractors, technical advisers/consultants, promoters etc. Similarly the machinery/equipment suppliers might have been suggested by the collaborators, consultants etc. or selected through competitive bids Give full details including degree of sophistication/obsolescence of the main equipment; and also explain the advantages of selecting the supplier(s).

 

H. Raw Materials

 

·                     Give detailed specification preferably including any industrial standard of raw materials required by the unit. In the case of raw materials/ chemicals, which are in short, supply, indicate the special arrangements, which the company proposes to make for obtaining the indigenous, and imported raw materials.

·                     In the case of automobile and engineering industries give complete list of parts indicating seperately details of manufactured bought‑out semi-finished (BOSF), bought‑out finished (BOF) and proprietary components. Give a write‑up on ancillary development for supply of components and alternate sources in view of critical components.

 

I. Utilities

 

Power

·                     The power requirements of the project could be met either from the State Electricity Board (i.e. purchase power) or partly from the Electricity Board and partly through internal generation. Give separately the quantum of power requirements expected to be met by the Electricity Board and the quantum of own generation proposed. The sum total of power available should at least be equal to the project requirements.

·                     Furnish particulars of the electrical sub‑station from which power would be made available, its distance from plant site, progress in extending the supply line, voltage at which power would be made available and other terms such as how the cost of extending the supply line would be borne etc.

·                     Standby arrangements are generally meant only for meeting emergency situations. Such arrangements may be explained in details, giving the capacity of the generator and the equipment proposed to be operated with the standby generator.

·                     Give details of electricity tariff payable to the Electricity Board.

 

Water

·                     Explain in detail the proposed arrangements for obtaining the water requirements for the project. In the case of tube‑wells, give the number of tube‑wells proposed to be sunk and their capacities. If water is to be drawn from river etc., give particulars regarding water flow in the river during monsoon and lean season, the length of the pipe line, number of reservoirs and their capacities etc. Also explain whether the water has been analysed and found suitable for use by the unit. If any water treatment is proposed, explain the arrangements envisaged and the capital cost thereof

 

Steam

·                     Indicate the areas where the steam will be used. If part of the steam is required to the used for generation of power, give details.

 

Compressed Air, Fuel etc.

·                     Give information separately regarding the requirements and sources of supply of compressed air, furnace oil, coal etc.

 

J. Effluent

 

·                     Some of the units have run into difficulties for not having taken adequate and timely measures for proper disposal of solid, liquid and/ or gaseous effluents. It must be ensured that there exist adequate arrangements for treating all the effluents. Provide complete details of such arrangements.

·                     Explain in detail the special characteristics, such as alkaline, acidic, toxic/poisonous etc. of the effluents which are harmful to any living organism or vegetation and the arrangements proposed for their treatment and disposal.

 

K. Labour

 

·                     Explain in detail the plans for recruiting and training labour and supervisory personnel.

 

L. Quarters and Labour Housing

 

·                     Give particulars of the quarters proposed to be constructed for the various categories of employees.

 

In the case of housing for labour, it is possible to meet part of the expenditure through Government's industrial housing schemes. This amount may be indicated. Besides the construction of housing, indicate the arrangements proposed to be made for housing of essential staff and whether any accommodation is available for others in the nearby village/town.

 

M. Schedule of Implementation

 

·                     The proposed schedule of implementation may be given separately for each activity. Also, give a brief write‑up on the physical Progress made as at the time of making proposal for assistance.

 

It will be necessary to support the schedule of implementation by a bar diagram indicating the major activities. In the case of large projects, it will be advantageous to prepare a PERT chart showing the implementation schedule and the critical path.

                                                                                                                                                                       

N. Other Projects of the Concern

 

·                     If the promoters and /or the applicant company is planning to take up any more schemes either simultaneously with this project or in the near future, give particulars of such schemes, indicating, inter alia, the project cost, proposed means of financing and the arrangements made for meeting the cost of the schemes and personnel for implementing and operating the project.

 

5. COST OF THE PROJECT

 

·                     Utmost care needs to be taken while fixing cost of project because based on this aspect 'means of financing' are decided. Each and every element of cost, which is expected to form part of the project, should be included.

·                     The amount of expenditure already incurred and the expenditure proposed to be incurred under various beads may be given in separate columns. Both rupee cost and rupee equivalent of foreign exchange cost, if foreign exchange is involved and totals thereof may be given under expenditure already incurred and expenditure proposed to be incurred. The rates at which foreign currencies have been converted into Indian rupees may be indicated in a footnote.

 

6. MEANS OF FINANCING

 

·                     In the case of existing companies, cash generation from the existing activities may be available for financing part of the project cost. This amount may be shown against 'internal cash accruals' in the means of finance. It should be clearly established that the availability of internal accruals as envisaged is assured by giving relevant facts and figures.

·                     Indicate the amount of foreign exchange proposed to be obtained from different sources, such as foreign currency loans from IFCI/ICICI, free foreign exchange from Government of India, import from Rupee payment area, Government-to-Government credit, suppliers' credit etc.

·                     The total contribution, which will be brought in by the promoter group including contribution from SIDC/SIIC etc., which form part of the promoters' contribution, should be indicated clearly.

·                     Under their statutes IDBI and IFCI are prohibited from financing concerns in which their directors or their relatives are substantially interested. A complete list of persons who would be contributing towards the promoters' share of the share capital and the contribution of each one of them may there against be furnished. In case any of the IDBI/IFCI directors or his relatives would be subscribing to the shares reserved for the promoters, this may be specifically indicated. The shareholders subscribing to the promoters' contribution will be called    upon to give an undertaking for non‑disposal of shares to the institutions.

·                    Security for term loan assistance will normally be a first pari passu charge on all the movable and immovable assets of the company, present and future, subject to charge in favour of bankers (on specified movables) for working capital requirements. However, if for any particular reason any additional/different security is proposed to be offered, it may be explained.

 

7. MARKET AND SELLING ARRANGEMENTS

 

The entrepreneur shall ensure that there is a reasonable market potential for the product before taking a decision to set up facilities for its manufacture. The fact that the industrial licence etc. has been given by government does not necessarily mean that the market aspect has been fully examined. The unit would be well advised to undertake a comprehensive market survey to establish the market potential to the satisfaction of the institutions. Important points are given as under:

 

·                     Describe the product, its major uses and present and future market prospects. If the product is a new one intended to substitute an existing product, explain the special qualities/features of the product vis‑a‑vis the existing product, which would be substituted. Bring out clearly the advantages of the unit's product vis‑a‑vis the products of its competitors.

·                     Give data on the present installed capacity likely to materialise in each of the next few years and current production and expected production for the next few years. Figures of existing capacity and production would be available from publications like the Monthly Statistics of Production (published by the Central Statistical Organisation), Guidelines to industries (by DGTD) etc. Some of the sources for the estimates of future demand are publications of the Planning Commission, OGTI), Chambers of Commerce and Industry, State Directorates of Industries, State Industrial Development Corporations etc. There are a number of consultancy organisations in the country which would also be able to undertake a detailed market study on behalf of the applicant.

·                     If it is proposed to export a part of the production (either because of a stipulation in the industrial licence or for any other reason), give data regarding the export market, international prices during the last 2/3 years etc. The information may include figures of the country's export of the product to the various countries for the past few years and projected export demand made by the Export Promotion Councils, Development Councils, Trade Development Authority etc.

·                     If the bulk of the production is expected to be sold to a few consumers, or the product is sophisticated and has a limited market, please indicate the long‑term arrangements, if any, made with such consumers or dealers in the products.

·                     The price assumed for the product is important in deciding the viability of the project. It is advisable to assume a price somewhat lower than the net price realised by other existing manufacturers.

·                     Often, a new entrant in the market would have to offer his products at a relatively lower price in order to attract customers and to get established in the market. In the case of products for which prices fluctuate at short intervals, it is preferable to assume a reasonable price based inter alia on the average price for the previous few quarters/months, depending on the periodicity of fluctuation's. It must be noted that it is difficult for a company to realise the price prevailing during the periods of temporary shortages.

·                     If raw materials are to be obtained from the agricultural sector (such as sugarcane, raw cotton etc.), or the finished products are to be used in agricultural farms (such as fertilisers, pesticides etc.), it is generally necessary to start an educational campaign of a seeding programme for the benefits of the farmers much before the project goes on stream. Explain the steps taken/proposed to be taken by the company in this regard.

 

8. PROFITABILITY AND CASH FLOW

 

·                     The break‑even point is the minimum level of production at which a project would reach a no profit no loss position. For calculating the break‑even point, figures may be taken from the profitability statement for the year in which the maximum capacity utilisation is expected to be achieved for the first time. Enclose work‑sheet and indicate the basis of computation.

 

9. ECONOMIC CONSIDERATIONS

 

·                     It is all the more important for the institutions to assess the economic benefits from the project accruing to the country, particularly in terms of foreign exchange earnings.

·                     Furnish the international prices (f.o.b prices exports and c.i.f. for imports) of the finished product and of the major material inputs such as raw materials etc. It is not necessary that the company should be importing or exporting the commodities. The figures of international prices are required by the institutions for calculating the benefits accruing to the country by indigenously producing or by exporting the products abroad. The data for this purpose could be obtained from. export promotion councils, industry associations, leading importers/ exporters, foreign trade journals etc. and the sources from which data have been obtained may be indicated.

·                     Also explain the company's assessment in detail of the scope for ancillary industries to come up in the area as a result of the setting up of the proposed project.

 

 

10. GOVERNMENT CONSENTS

 

·                     If any special conditions have been imposed in any of the approvals indicate how far these conditions have been complied with and steps taken to comply with the same. If the company has made any representation for deletion/waiver of the stipulations, copies of correspondence exchanged may be enclosed.

 

11. DECLARATIONS

 

All the declarations must be signed by the Managing Director or a Director authorised to do so