Presented by Sindh Board of Investment

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1 Presented by Sindh Board of Investment SINDH ENTERPRISE DEVELOPMENT FUND

2 Sindh Enterprise Development Fund (SEDF) The Government of Sindh with a vision to encourage investment in the SME sector, inculcate entrepreneurial ability and to provide a major push to the wider Agri economy, has created Sindh Enterprise Development Fund to provide legal as well as institutional mechanism to achieve such objectives. It aims to provide opportunities for value addition in the agriculture sector for multiple economic benefits on growth, intermediary services and productivity. It also seeks to introduce farm level interventions to improve efficiency and profitability. Technical Assistance Assistance in preparing feasibilities Assistance in obtaining loan from banks Preparation of SEDF s support form Financial Assistance: Payment of interest (KIBOR) 100% on capital cost 50% on working capital

3 SEDF has committed Financial Subsidy (KIBOR) for Plant, Machinery and Working capital of these Projects: Sr. Name Project Size Capacity SEDF Subsidy No. Dairy & Livestock 01. Dairy Land Pvt Ltd, Thatta Rs.180 Million 1500 cows Rs.19 Million Introduced modern dairy farming ensuring better milk yield & compliance with Bio Safety Standards. Generating direct employment of 250 people & indirect employment of 150 people

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5 Sr. No. Sindh Board of Investment Name Project Size Capacity SEDF Subsidy Maize Milling Plant & Grain Storage System in Sindh 02. Reliance Exim (Pvt) Ltd Unity Group Rs Million 30,000 tons annually Rs Million Unity Group has strong belief that by installing the maize storage system and processing facility in Sindh, it will give confidence to Sindh Growers to Grow More and Export More. Maize has the longest value chain among all the cereals as it is a very rich source of starch for the industrial sector (textiles, pharmaceutical, confectionary, etc) food products and animal & poultry feed manufactures. Pakistan maize is non GMO product as it is not Genetically modified. This also mean that Pakistan maiz has better nutrient values than maize of other region.

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7 Sr. No. Sindh Board of Investment Name Project Size Capacity SEDF Subsidy Cotton Seed De-Linting and Ginning Mill 03. National Seed Ventures, Kotri Industrial Area Rs.170 Million tons per annum Rs.23.3 Million The project includes de-linting Machine which is first of its kind in the Sindh and will provide raw material for Chemi Viscose Fiber plant in Benazirabad (presently shut due to non-availibility of raw material ) The Company is installing high tech delinting plant, to produce cotton linter. Conventionally, the cottonseed is just crushed as it is, resulting in wastage of linter in the oil cake. Delinted oil cake will have high percent of protein as compared to non delinted oil cake.

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9 Environment Controlled Cold Storage 04. BlueScope Refer Solution at Jinnah International Airport Rs.140 Million 9,000 Cu Mtr Rs.14 Million This project will provide technologically advanced cold store for fresh horticulture products, reducing post harvest losses due to absence of such facilities leading to exportable surplus. The project will not only enhance shelf life and value of the agri-based produce that is exported from our country, but will also enable Pakistan to enter markets which were previously inaccessible due to absence of requisite cold storage and processing facilities.

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11 Sr. No. Sindh Board of Investment Name Project Size Capacity SEDF Subsidy Environmentally Controlled Poultry Farm 05. Project Volaille: Establishment of Environmentally Controlled Poultry Farm Rs Million 120,000 birds/flock Rs Million The poultry industry are adopting new technologies in the field to enhance productivity and minimize infection risks. Environment controlled sheds is one of the technological advancement being used to counteract the adverse effect of heat stress by providing tunnel ventilation and enhancing the wind chill effect. These sheds, when equipped with automatic chain feeding and nipple drinking systems, make the environment conductive for poultry production and reduce the risk of bacteria during seasons.

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13 Sr. No. Sindh Board of Investment Name Project Size Capacity SEDF Subsidy Slaughter House and Cold Storage 06. The Organic Meat Company (Pvt) Ltd Rs Million 350 tons Export per Month Rs Million The company wishes to expands its existing slaughter house by introducing offal production and expansion of vacuum based packing technology to cater increasing demand of processed meat in Middle East Countries. Considering the present trend and increasing local demand, it is expected that in future, demand for livestock products will increase at a higher rate primarily on account of increase in population and the elasticity of demand associated with meat products.

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15 BMR SCHEME FOR RICE HUSKING MILLS IN SINDH Introduction SEDF has launched BMR scheme for ailing Rice Husking Mills in collaboration with State Bank of Pakistan and Participating Financial Institutions (PFIs). Currently, there are about 800 Rice Husking Units which were established in the 1960s and 70s installed with old Iron-Hullers for husking. If compared with rice producing countries like Thailand, Vietnam, China and Japan, most of the mills have outdated technology with operational losses as high as 40%. SEDF s objective is to modernize and restructure Rice Husking Units throughout Sindh in phases. The scheme entails 30% Credit Guarantee and subsidy of 6.25% credit guarantee and against refinance rate. The applicant is expected to pay bank spread which is 3-4%.

16 BMR SCHEME FOR RICE HUSKING MILLS IN SINDH Financial Outlay BMR of 100 mills will require approximately a debt of Rs million to be provided by the SBP under its Refinance 6.25%. SEDF shall provide 30% of the loan guarantee and pick up the bank interest rate. The grantee will pay the principle along with Bank spread of 2.75%. Loan sizes will differ from case to case however on an average, these will range between Rs. 7 to Rs. 10 million and in few cases these may be slightly higher. The average payback period is 3-5 years. The overall scheme will work in a manner where SEDF will place the 30% guarantee funds amounting to Rs. 300 million with SBP and it would pick up the cost of Refinance of 6.25% primarily from the return on the placement of these funds.

17 SEDF Upcoming Projects Dates Processing Khairpur, Sindh Mango, Guava and Tomato Fruit Pulping Units in Sindh Banana Pack House, Tando Allahyar, Sindh Banana Tissue Culture Laboratory, Tando Allahyar, Sindh

18 Thank You