Setbacks On Sugar

But there is a catch in this. The holder of an unutilised LoI can also apply for an extension of time. The government has itself shown the way by indicating that such a decision will depend on whether the company has undertaken preparatory action like acquiring the land, starting civil construction, placing orders for plant and machinery and applying for a term loan if necessary. It is not clear if one or some or all of these conditions have to be fulfilled to qualify for an extension. The whole process thus seems designed to enable bureaucrats to continue to entertain applications and sit in judgment over them.

But even after fulfilling some of the conditions, it will be quite possible for an entrepreneur who finally decides not to set up a factory after getting an extension, to get out at little cost to himself. It is quite easy to cancel the order for machinery or say