Close on the heels of an 'in principle’ nod by the Cabinet Committee on Economic Affairs (CCEA), the government approved modalities for the beleaguered sugar industry to avail interest-free loans to the tune of Rs 6,600 crore from banks for effecting timely payment to cane growers.
In a meeting held on Thursday, CCEA accorded final nod for interest subvention of up to 12% for the industry under the 'Scheme for Extending Financial Assistance to Sugar Undertakings, 2013’.
As decided earlier, the entire interest burden on the loan, estimated at Rs 2,750 crore, will be met from the Sugar Development Fund under the Food Ministry. The ministry will also finalise the guidelines for banks and millers. Further, the loan which will be equivalent to last three sugar sessions’ excise duty, cess and surcharge on sugar, would need to be repaid in five years, with moratorium on repayment for the first two years.
In a meeting held on Thursday, CCEA accorded final nod for interest subvention of up to 12% for the industry under the 'Scheme for Extending Financial Assistance to Sugar Undertakings, 2013’.
As decided earlier, the entire interest burden on the loan, estimated at Rs 2,750 crore, will be met from the Sugar Development Fund under the Food Ministry. The ministry will also finalise the guidelines for banks and millers. Further, the loan which will be equivalent to last three sugar sessions’ excise duty, cess and surcharge on sugar, would need to be repaid in five years, with moratorium on repayment for the first two years.
No comments:
Post a Comment