Food testing labs and waste management plants in the small and medium sector would now be eligible for finance by Kerala Financial Corporation (KFC).
The corporation has come out with a scheme envisaging assistance for hotels, restaurants and food processing units as part of this scheme.
SME SECTOR
This is a well-thought plan to deal with a situation triggered by rapid urbanisation, change in consumption pattern and food quality food scare, a spokesman said.
For instance, solid waste management has proved well beyond the capacity of existing infrastructure.
Though local self-governing bodies and the Government have introduced various schemes for solving these two main issues, they have not yielded desired result.
The small and medium (SME) sector in the State should get into the act and support the collective efforts of the public and the Government ‘as part of good governance.’
The loan eligibility is to the extent of 90 per cent of the total project cost for units presently enjoying a loan facility from the corporation and 75 per cent for new units.
REBATE OFFER
The loan can be used to purchase high-tech lab equipment of national or even international standards and also for setting up waste treatment plants/biogas units.
The loans are offered at attractive interest rates with a two per cent rebate for prompt repayment and one per cent additional cut for eligible cases with good credit rating.
In order to promote the scheme, the corporation also decided to give a concession in the processing fee, the spokesman said.
Processing fee charged will be only 0.25 per cent of loan sanctioned (against 0.75 per cent normally charged) but subject to maximum of Rs 0.25 lakh.
The repayment period of the loan will be five years, including a one-year moratorium, the spokesman added.