AP state govt extends guarantee on loans to sugar units

The state government has extended unconditional, irrevocable guarantee in favour of AP State Cooperative Bank (APCOB) for providing working capital finance to an extent of Rs 88.8 crore to six cooperative sugar factories whose networth is negative.

There are a total of 11 cooperative sugar factories in the state, of which three are not working in the current season due to non-availability of adequate sugarcane and two factories at Etikoppaka and Chodavaram have a positive networth and need no government guarantee for obtaining loan, according to an official press release.

The remaining six sugar units for which the government guarantee has been extended are Sri Venkateswawara Cooperative Sugars (loan sanctioned by APCOB Rs 16 crore), Chittoor Cooperative Sugars (Rs 20 crore), Kovur Cooperative Sugars (Rs 10 crore), Sri Vijayarama Gajapathi Cooperative Sugars ( Rs 13.5 crore), Thandava Cooperative Sugars ( Rs 20 crore) and Anakapalli VV Ramana Cooperative Sugars (Rs 9.3 crore).