Govt notifies norms for interest-free loans to sugar mills
7 Jan 2014 3:51 AM IST
The government has notified the modalities for the beleaguered sugar industry to avail of interest-free loans to the tune of Rs 6,600 crore from banks for payments to cane growers. The Cabinet Committee on Economic Affairs had approved the loans for the cash-starved sugar mills last month.
‘The central government, with a view to improve liquidity position of sugar factories for enabling them to clear cane price arrears of previous seasons and timely settlement of cane price of current season, hereby notifies 'the scheme for extending financial assistance to sugar undertakings 2014,’ according to the notification issued by the Food Ministry.
The interest burden on the loans is estimated at Rs 2,750 crore over the next five years and will be borne by the Centre from the Sugar Development Fund.
‘The central government, with a view to improve liquidity position of sugar factories for enabling them to clear cane price arrears of previous seasons and timely settlement of cane price of current season, hereby notifies 'the scheme for extending financial assistance to sugar undertakings 2014,’ according to the notification issued by the Food Ministry.
The interest burden on the loans is estimated at Rs 2,750 crore over the next five years and will be borne by the Centre from the Sugar Development Fund.
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