Super Iron Foundry taps US$2.81M in state-backed loans to shore up working capital
What's the deal? Super Iron FoundryDealroom has a profile for this one. Try Dealroom → has secured US$2.81M in debt from UCO BankDealroom has a profile for this one. Try Dealroom → and Bank of IndiaDealroom has a profile for this one. Try Dealroom → under the government's Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The company took US$1.32M from UCO Bank and US$1.49M from Bank of India on July 4, 2026, both classified as working capital term loans with a 60-month tenor.
The terms: The loans are secured by a charge on 328 decimal of land in Durgapur, Burdwan. The lenders are not related to the company's promoter group, and the agreements carry no special rights such as board appointments, according to the filing to BSE.
Why now? ECLGS 5.0, approved by the Union Cabinet in May 2026, opens a US$34.6B credit window offering up to 20% additional working capital, capped at US$13.6M per borrower, to businesses facing liquidity pressure tied to the West Asia crisis. The scheme carries nil guarantee fee, up to 100% credit guarantee coverage for MSMEs, and a five-year tenor including a one-year principal moratorium.
What's the endgame? The funds are earmarked to meet the company's working capital requirements. The facility is a state-backed working-capital loan rather than a conventional, market-driven equity round.
The signal: ECLGS 5.0 has scaled fast — by early June 2026 it had crossed 1 lakh guarantees totaling about US$6.58B, with applications representing US$23.2B in demand. Super Iron Foundry's loan is a mark of how mid-sized manufacturers are tapping the scheme to ride out external shocks, not a standalone validation of the company's growth.
Read more: Scanx.trade
Image credit: Kheel Center, Cornell University Library
