Eligibility Criteria

1. Eligibility Criteria for Participating Institutions (PIs)

I. Institutional/Governance Criteria

i. PIs should have a duly constituted Governing Body such as Board of Directors/Management Committee as applicable to the legal form of the PI.
ii. PIs should have a full time Chief Executive/Managing Director (or equivalent) and adequate number of qualified technical and managerial personnel at key positions.
iii. PIs should be willing to amend Bye-laws.
iv. PIs should have fixed/undisturbed tenure for senior/key management personnel including Managing Director/Chief Executive.
v. Board of the PI should nominate one expert each in the field of finance, dairy technology and marketing as independent directors.

II. Financial Criteria

a. General Criteria (applicable for all PIs):

i. Audit of accounts should be up-to-date and the auditor’s observations should not contain any adverse opinion or disclaimer.
ii. PIs should not have any over-dues to any financial institution.
iii. PI should not be in a default to any bank/financial institution.
iv. PI needs to contribute its share in the Project. However, in case PI does not have adequate resources to contribute its share, State Government may offer necessary grant.

b. Additional Criteria (applicable for PIs availing loan):

i. PI should have positive net worth.
ii. All outstanding dues to producer members should not exceed four payment periods.
iii. The financial returns of the Project: Project will have uniform rate of Return on Investment (ROI) of 10% (minimum) and Debt Service Coverage Ratio (DSCR) of 1.5 times (minimum) for all sub projects.
iv. The loan should be secured through collateral security, which should be minimum 1.5 times of the loan amount in terms of mortgage of immovable assets and hypothecation of movable assets. In case of shortfall, State Government guarantee will be required.