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

The Central Government on 03 January 2014 has notified a 'Scheme for Extending Financial Assistance to Sugar Undertakings, 2014 (SEFASU, 2014)' envisaging interest free loans worth Rs.6600 crores by banks as additional working capital to sugar mills. The loan amount has to be utilized by the sugar mills for clearance of cane price arrears of previous sugar seasons and timely settlement of cane price of current sugar season to sugarcane farmers. As per the information received from the nodal bank i.e. State Bank of India, loans amounting to Rs.5775 crores have been sanctioned upto 30.06.2014 under the scheme. Out of the sanctioned amount Rs.5164 crores have been disbursed to the sugar mills upto 04 July 2014. This information was given by the Minister of State for Consumer Affairs, Food and Public Distribution, Shri Raosaheb Patil Danve. 

 The Minister said that it has been stipulated in the scheme that State sugar/cane commissioners would monitor the utilization of the loan. The concerned sugar mills would submit utilization certificate to the Central Government duly verified by sugar/cane commissioner certifying that the loan amount has been utilized for the purpose specified in the scheme. <?xml:namespace prefix = o /> 

He said that data relating to number of sugarcane growing farmers benefited under SEFASU, 2014 is not maintained by the Central Government. However, a statement indicating state-wise details of the loan amount sanctioned and disbursed to sugar mills under the scheme is as follow: 

SR. NO. STATES SANCTIONED DISBURSED

NO. OF

AMOUNT

NO. OF

AMOUNT

1

Andhra Pradesh

19

138.79

17

130.04

2

Bihar

4

50.78

1

9.62

3

Delhi

2

175.06

2

175.06

4

Goa

1

2.98

1

2.98

5

Gujarat

13

286.96

13

283.64

6

Haryana

11

104.1

11

104.1

7

Karnataka

37

386.21

31

347.67

8

Madhya Pradesh

7

26.56

0

0

9

Maharashtra

107

1889.08

104

1724.99

10

Punjab

18

151.3

7

69.22

11

Telangana

1

1.04

1

1.04

12

Tamil Nadu

37

606.38

37

550.5

13

Uttar Pradesh

74

1875.27

72

1764.86

14

Uttrakhand

9

80.71

0

0

 

TOTAL

340

5775.22

297

5163.72

Powered by Capital Market - Live News