Interest Free Loans To Sugar Mills In India

Interest free loans of Rs.6600 crores to sugar mills to clear sugarcane arrears.

The Central Government on January 3, 2014 has informed a 'Plan for Extending Financial Assistance to Sugar Undertakings, 2014 (SEFASU, 2014)' conceiving premium free advances worth Rs.6600 crores by Banks as extra living up to expectations money to sugar factories. The advance sum must be used by the sugar plants for freedom of stick value unpaid debts of past sugar seasons and opportune settlement of stick cost of ebb and flow sugar season to sugarcane ranchers. According to the data got from the nodal bank i.e. State Bank of India, advances adding up to Rs.5775 crores have been endorsed upto 30.06.2014 under the plan. Out of the endorsed sum Rs.5164 crores have been dispensed to the sugar factories upto 04.07.2014. This data was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve in a composed answer in Lok Sabha today.

The Minister said that it has been stipulated in the plan that State sugar/stick officials would screen the usage of the credit. The concerned sugar factories would submit usage declaration to the Central Government properly confirmed by sugar/stick chief confirming that the advance sum has been used for the reason detailed in the plan.

He said that information identifying with number of sugarcane developing ranchers profited under SEFASU, 2014 is not kept up by the Central Government. Nonetheless, an announcement demonstrating state-wise subtle elements of the advance sum endorsed and dispensed to sugar processes under the plan is as take after: