Please refer to MFD Circular No. 04 dated June 24, 2008 in terms of which financing for import of generators / captive power plants, used in the eligible sectors / sub-sectors as per list given in the Schedule 1 of LTFF, is admissible under the captioned facility.
2. State Bank has received the requests of power companies which are being established by the Export Oriented Companies as wholly owned subsidiaries to meet their power requirements for seeking financing under SBP’s Long Term Financing Facility (LTFF) for Plant & Machinery. In order to facilitate the export oriented companies to overcome problems arising out of the prevailing power crises it has been decided as under :-
- Banks / DFIs may consider financing request of a power company under LTFF which is established as a wholly owned subsidiary of the eligible export oriented company to meet its power requirements. Banks /DFIs may consider the financing request of the power company if its holding company / project has minimum export sales prescribed under the facility viz. annual exports equivalent to US$ 5 million or 50% of sales whichever is lower .
- Financing banks / DFIs shall ensure / verify that the power company to be financed under LTFF shall provide at least 70% of the power to its export oriented holding company for producing exportable goods.
- The export oriented holding company shall furnish an undertaking for purchase of at least 70% of the power from the power company during the loan period.
- Under aforesaid arrangements, maximum financing limit of a single power company will be Rs 1,500 million under LTFF. Further, L/Cs established up-to 30 th June 2017 only shall be eligible for refinancing under LTFF.
- Any violation of the terms & conditions of LTFF including any abuse of the facility will result in imposition of penalties.
Other terms and conditions of LTFF shall remain the same.