AGREEMENT

(For Availing Credit Linked Subsidy under Technology Mission on

Coconut for Adoption of Technology)
THIS AGREEMENT made this ..day of .Two
thousand fifteen (2015) between M/s Prominent Nucifera, 4/534
Churakkapallam, Vengodi, Palakkad Dist, Kerala (hereinafter
referred to as Unit, which expression shall unless excluded by
or repugnant to the subject or context thereof, include their
heirs, executors, administrators, legal representatives and
assigns) on the FIRST PART.
And
The Kerala Financial Corp, Branch Office, Sultanpet, Palakkad
having its registered office at Thiruvananthapuram, hereinafter
referred to as Bank, which expression shall unless excluded by
or repugnant to the subject or context thereof, include their
heirs, executors, administrators, legal representatives and
assigns on the SECOND PART.

First Party
Party

Second Party

Third

(PROMINENT NUCIFERA)
(KFC)
(CDB)
And
Coconut Development Board, a Government of India
organization established under Coconut Development Board Act
1979, and having its head office at Kochi, hereinafter referred
to as Board which expression shall unless excluded by or
repugnant to the subject or context thereof, include its
successors and assigns on the THIRD PART.
1. WHEREAS Government of India had launched the scheme
of Credit Linked Subsidy for Adoption of Technology under
Technology Mission On Coconut (hereinafter referred to as
Scheme) Scheme with a view to facilitate adoption of
proven technologies approved under the scheme by
coconut processing units for specified products / by
products by providing 25% back ended subsidy and
2. Pursuant to the scheme, the Unit approached the Board
through Kerala Financial Corp, with a Project proposal for
Setting up of a Manufacturing Unit of Desiccated
Coconut at a total cost of Rs 115.00 lakh and sought
credit linked subsidy from the Board and the Board has
agreed to provide credit linked subsidy not exceeding Rs
23.03 lakh (Rupees Twenty three lakh and three thousand
only) on the basis of loan sanctioned and disbursed by the
Bank to the unit under the scheme.
NOW IT IS HEREBY AGREED BETWEEN THE PARTIES HERETO AS
FOLLOWS
a) The component wide details of the project approved are as
given in Annexure I
b) The project will be executed in full within a time frame of
one year
c) The milestones for monitoring the implementation will be
as in Annexure II
d) The final deliverables will be as in Annexure III
e) The milestones for release of subsidy will be as in
Annexure IV

First Party
Party
(PROMINENT NUCIFERA)
(CDB)

Second Party

Third

(KFC)

f) The subsidy sanctioned and released by the Board under

the Technology Mission of Coconut shall be utilized for the
purpose for which it has been sanctioned. The subsidy
sanctioned and released by the Board under the
Technology Mission on Coconut shall be kept in the
subsidy reserved fund account of the unit. The subsidy
credited to the subsidy reserve fund account of the unit
with Bank shall have a lock in period of five years, and
as such shall be adjusted to the loan account of unit on
expiry of the lock in period and on liquidation of the
entire loan (excluding subsidy portion credited to subsidy
reserve fund account of the unit) with the prior
permission from the Board. No interest shall be
charged on the loan amount kept in the subsidy reserve
fund.
g) The lock in period for back ended credit capital subsidy
will be reduced from 5 years to 3 years in case where the
projects are completed and loan component is repaid in
full (excluding subsidy portion credited to subsidy reserve
account of the unit) by the enterprises to the financial
institution.
h) Upon completion of the Construction of building,
installation of Machinery and other components as
approved in the project, the unit shall inform the Board
that the project has been completed as per the approved
project and as detailed in the project report submitted by
the Unit and on submission of statement of actual
expenditure incurred for completion of the project duly
authenticated by the Bank, the officials of the Board and
the Bank shall jointly inspect the unit and the balance
amount under the project shall be disbursed on receipt of

satisfactory joint inspection report and also confirmation of

release of the balance full amount of term loan by the
Bank to the unit.
i) The unit shall submit to the Board a certificate of
utilization of the subsidy released by the Board through
the Bank.
j) The unit shall furnish a certificate that they have not
availed any financial assistance for the project from any
other source.
k) Steaming and blanching should be incorporated in the
process system for quality improvement and Effluent
treatment system should be installed and clearance form
Pollution Control Board should be obtained.

First Party

Second Party

Third

Party
(PROMINENT NUCIFERA)
(KFC)
(CDB)
l) The unit shall display a permanent board in the premises
of the unit stating that the project was established
with the financial assistance from the Coconut
Development Board under the scheme Technology
Mission on Coconut and the unit should mention in
their advertisement and packing of their products
regarding the financial assistance from the Coconut
Development Board under the scheme Technology
Mission on Coconut.
m)
The Board shall have the right to evaluate the
progress of the project and the unit shall render all
assistance as and when such evaluation is conducted by
the Board.
n) The unit shall furnish to the Board a monthly Progress
report / production statement (Physical & Financial) in a
proforma prescribed by the Board.
o) The unit shall submit audited annual statement of
accounts on production, turnover, sales, exports etc to the
Board on a regular basis.

p) The unit shall engage qualified technical experts to ensure

professional management and technical supervision of the
units.
q) The unit should obtain HACCP/ISO/FSSAI certification and
the product should meet BIS/Agmark standard. The
product sample should be periodically got analyzed at
QTL, Vazhakulam, Ernakulam Dist, Kerala.
r) Where any of the above information furnished by the unit
is found to be untrue or incorrect or where the applicant
fails to abide any of the terms and conditions of the
scheme under which the subsidy is granted by the Board,
we (the unit and the Bank) undertake as bound, jointly and
severally to abide by the following.
(i)
The Board would have the right to claim back the
amount of subsidy which has been granted by the
Board against the application make by the applicant
along with an interest at the prevailing rate then for
the period from the date of disbursement of subsidy
till the date of refund of the same.
(ii) The Board would have right to claim such sum of
subsidy released to the unit from the sale proceeds of
properties/assets of the unit.

First Party
Second Party
Third Party
(PROMINENT NUCIFERA)
(KFC)
(CDB)
s) The unit shall not be entitled to any subsidy in case the
project is abandoned midway or the term loan availed
from the bank is closed prematurely or the conditions
stipulated by the Project Approval Committee are not
satisfied. In such cases, the subsidy available in the
subsidy reserve fund shall be returned to the Board by the
Bank fully together with accrued interest or as directed by
the Board.
t) In the event of closure or abandonment of the unit and
recovery of the loan from the unit the Bank should recover
the subsidy released by the Board to the unit with interest
and refund it to the Board.

IN WITNESS WHEREOF, THESE PRESENTS HAS BEEN READ

SIGNED SEALED AND DELIVERED ON DAY OF
2015, BY ABOVE NAMES / PARTIES.

K. Salim Haider
K. Jayaraman
Proprietor
Chief Manager
(PROMINENT NUCIFERA)
(Kerala Financial
(Coconut
Corporation)
Development
Board)

Components

Total
Project
Cost

Land & Land Dev

Building and Civil works
35.00
Plant & Equipments
51.50
ETP
4.55
Bio Gas Plant
2.10
Electrification
2.50
Generator
4.70
Storage equipments (racks,
2.60
almirahs etc)
Preliminary and Pre Op
1.20
expenses
Working Capital margin
10.85
Total
115.00

ANNEXURE I
Eligible
Maximu
Project
m
Cost
Eligible
Subsidy
(in lakhs)
28.28
7.07
50.44
12.61
3.50
0.88
2.10
0.52
2.23
0.56
4.68
1.17
0.91

0.22

92.14

23.03

ANNEXURE II
Milestones for Monitoring the implementation
1. Construction of civil works to be completed within
months of signing of MoU
2. Installation of machineries to be completed within
months from signing the MoU.
3. Trial production to be completed within 10 months
signing the MoU.
4. Commissioning to be completed within 12 months
signing the MoU.

6
9
of
of

ANNEXURE III
Final deliverables
Installed capacity : To process 10,000 coconuts per day for
producing 1.00 MT
Desiccated Coconut Powder per day

First Party
Party
(PROMINENT NUCIFERA)
(CDB)

Second Party

Third

(KFC)
ANNEXURE IV

Milestones for release of Subsidy

1. 50% of eligible subsidy will be released after signing the
MoU and on availing 50% of the term loan sanctioned.
2. Balance 40% of eligible subsidy will be released on
satisfactory inspection report by Board Officials and Bank
and on confirmation of release of 100% of term loan
sanctioned by the Bank/Financial Institution to the unit and
production
of
completion
certificate
from
the
Bank/Chartered Accountant/Chartered Engineer.
3. Balance 10% of eligible subsidy will be released on
reaching commercial production and submission of
production details and other documents as stipulated in
the MoU.

First Party
Party
(PROMINENT NUCIFERA)
(CDB)

Second Party
(KFC)

Third