The Presidents/ CEOs,

All Banks/DFIs

Dear Sirs /Madam,

Long Term Financing Facility (LTFF) for Plant & Machinery-Modifications thereof

Please refer to the captioned Scheme circulated vide MFD Circular No. 07 dated December 31, 2007 and other instructions issued from time to time in the matter.

2. In order to further facilitate the export oriented industries following amendments have been made in LTFF Scheme with immediate effect:-

i) LCs (sight and usance) established before the announcement of the LTFF Scheme and retired after June 30, 2007 shall also be eligible for financing under the Scheme. However, LCs which have been retired through own sources of the sponsors of the export oriented industries, shall not be eligible under the Scheme.

ii) Financing for plant, machinery & equipment to be used by the export oriented projects for regeneration of textile waste into usable fiber for producing value added exportable products shall also be eligible under the subject Scheme.

iii) Refinancing shall be allowed to the extent of 50% of financing provided by banks/DFIs to the eligible borrowers availing facilities under para i & ii, while the remaining 50% will be financed by the banks/DFIs from their own sources as per the terms & conditions of financing banks/DFIs agreed with the borrowers.

3. All other instructions, on the subject, shall remain same.

Please acknowledge receipt.