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R. Balaji

CHENNAI, June 26

TANFLORA Infrastructure Park Ltd is looking to Tamil Nadu Industrial Investment Corporation (TIIC) for term loan following the exit of the Small Industries Development Bank of India. The company said that it decided to approach TIIC for the loan following the delay in sanctioning of the loan by SIDBI.

When contacted by Business Line, Mr Najeeb Ahmed, Managing Director, Tanflora, said the initial meetings had been held with TIIC and the term loan was set to be cleared soon. The project is well on track, with the promoters set to commence allotment of developed plots at the floriculture park.

Meanwhile, the other parties including IFC and IDFC have confirmed their participation in the project. Following the identification of Dharmapuri district, where the project is located, as an agri export zone for cut flowers, the Agriculture and Processed Food Products Export Development Authority (APEDA) had also disbursed a part of the subsidy, Mr Ahmed said.

While SIDBI had earlier granted a loan of Rs 9.95 crore which included term-loan and bridge loan components, the delay in project implementation and the demise of one of the co-promoters last year had prompted SIDBI to pull out. The Board has decided to withdraw the loan proposal with SIDBI and approach TIIC for term loan.

With the help of TIDCO, the term loan is being tied up with Tamil Nadu Industrial Investment Corporation Ltd (TIIC), who have agreed to disburse the loan expeditiously. With this the project can be implemented without any further delay, he said.

However, with TIIC in-principle approving the term loan component of a little over Rs 5 crore, the balance would be raised from the growers' contribution, he said. The developed land for the project will be allotted next month to about 25 growers, in the first phase, and production is expected to commence well on time to meet the requirement for the Valentine's Day in 2003.

Over 75 prospective applicants have expressed interest in setting up floriculture units within the park.

It may be recalled that Tanflora, the floriculture incubator park being promoted by the Tamil Nadu Industrial Development Corporation (TIDCO) and Bangalore-based private promoters with major interests in floriculture, has been notified as an AEZ by the Directorate-General of Foreign Trade following a MoU signed with APEDA.

Mr Najeeb said the APEDA had also set up offices in Amsterdam to facilitate marketing the floriculture products. The growers' contribution is expected to be about Rs 9 lakh each, and they will enter into a 60:40 revenue sharing agreement.

The larger share to Tanflora follows the infrastructure and freight facilities to be provided to the growers, he said.

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Tanflora in talks with TIIC for term loan

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