The Centre has unveiled a flexible personal loan restructuring program for debt-ridden sugar mills to obvious their superb amount from the Sugar Progress Fund (SDF). The program offers 24 months of moratorium which the government hopes will support it to acquire a sizeable portion of the dues. As quite a few as 171 sugar mills owed ₹3,052.seventy eight crore to economic institutions as of October 31.
The harmony personal loan amount including principal and fascination will be divided into equivalent month-to-month instalments for 5 many years right after moratorium time period, according to the tips unveiled by the Food Ministry. Whilst penal fascination will be waived off, mills will have to obvious principal and fascination, the tips explained. IFCI will be the nodal agency for private mills although the Nationwide Cooperative Progress Company (NCDC) is specified for scrutiny of the purposes of cooperative mills.
A committee below a joint secretary of Food Ministry will choose the beneficiaries of the scheme.“This is a new present only for the ailing mills to obvious both of those principal and fascination. Hope they will acquire the option and obvious their superb,” explained a Food Ministry official. All of these 171 mills, who have defaulted the SDF loans, have to have not automatically absence the ability to shell out, explained an industry source. Thanks to numerous explanations they do not obvious their loans, the official additional.
According to the restructuring method, sugar factory incurring “cash losses continuously for past a few economic many years or if the factory’s web truly worth is negative” is eligible to use for personal loan restructuring. The eligibility problem also says the factories which have not shut down or not stopped crushing cane for extra than two sugar seasons can use for the restructuring.
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Also these factories which experienced availed the restructuring of personal loan facility in the previous a few many years are not eligible to use this time.
Out of ₹3,052.seventy eight crore default of SDF loans, ₹1,627.79 crore was taken by mills for modernisation, ₹1,039.99 crore for co-era unit, ₹260.sixty nine for environment up ethanol vegetation and ₹1,24.31 crore for cane advancement, the official explained. Not a one organization in Uttar Pradesh has defaulted the SDF personal loan disbursed to set up ethanol vegetation.
Also, the overall defaulted amount incorporates ₹1,249.seventy two crore as principal and ₹1,060.fifty seven crore as fascination although remaining ₹742.forty eight as penalty.
“It is a good advancement and indicates a lot for these mills that are not accomplishing nicely for numerous explanations and are unable to repay the lender loans and alongside with the SDF loans,” explained Abinash Verma, Director Standard, Indian Sugar Mills Association (ISMA), the apex trade human body.
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For long time, the industry has been petitioning the Governing administration trying to get restructuring of the SDF loans and waiver or reduction of fascination for mills that have not been accomplishing nicely for numerous explanations, Verma explained.
The fascination rates for SDF loans are really nominal and are reduce by two for each cent factors when compared to the lender costs.
With inputs from BL Bengaluru Bureau