SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 27 Sep, 2014  

Rupee Hands THMB Govt to provide financial aid to sugar mills

Sugar.9.jpg
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
SME Times News Bureau | 26 Dec, 2013
The government Thursday said it will provide financial aid in the form of interest subsidy to cash-strapped sugar mills to enable them make payments to farmers for cane purchases.

The Cabinet Committee on Economic Affairs headed by Prime Minister Manmohan Singh gave its final approval to the proposal to provide interest subvention.

Under the proposal the central government will provide an interest subvention up to 12 percent, at a simple rate of interest, for the additional working capital loans to the sugar undertakings, equivalent to last three sugar seasons excise duty, cess and surcharge on sugar, according to an official statement released after the cabinet meeting here.

The expenditure for the scheme will be met fully from the Sugar Development Fund (SDF).

"The sugar undertakings with loans classified Non Performing Assets (NPA) by the banks will also be eligible for the loans provided the concerned state governments give guarantee for their new loans," the statement said.

The interest subvention or subsidy would be for a total loan duration of 5 years, including 2 years moratorium period. "No interest subvention to be provided for the period of default in the principal repayments."

"The loans would be meant exclusively for effecting cane price payments by the sugar mills," the statement said.

Sugar mills have been struggling to sustain operation due to financial difficulties. In fact, private mills in Uttar Pradesh had recently refused to start sugarcane crushing, saying it was not economically viable.

The government's move is aimed to help cash-strapped sugar mills sustain operation and make payments to farmers for cane purchases. 
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter