Banks grant Rs 4,000 crore interest-free loans to sugar mills
18/06/2014 17:50
Banks have so far disbursed over Rs 4,000 crore interest-free loans of the total Rs 6,600 crore approved by the government to cash-starved sugar mills for clearing dues to cane farmers, reported PTI. In December, the Cabinet Committee on Economic Affairs ( CCEA) had approved Rs 6,600 crore interest-free loans to the sugar industry exclusively for clearing sugarcane arrears. It decided to give loans via banks equivalent to the excise duty paid by the mills in the past three years, as per the media reports. "As on June 3, banks have disbursed Rs 4,072 crore interest-free loans to sugar mills," a senior Food Ministry official told PTI. Of which, Rs 1,412 crore and 1,461 crore have been disbursed to mills located in Maharashtra and Uttar Pradesh, the country's top-two sugar producing states, he said. Banks have been given June-end as deadline for sanctioning the entire loan amount. The total interest burden, estimated at Rs 2,750 crore over the next five years, is being borne by the government, as per the media reports.
18/06/2014 17:50
Banks have so far disbursed over Rs 4,000 crore interest-free loans of the total Rs 6,600 crore approved by the government to cash-starved sugar mills for clearing dues to cane farmers, reported PTI. In December, the Cabinet Committee on Economic Affairs ( CCEA) had approved Rs 6,600 crore interest-free loans to the sugar industry exclusively for clearing sugarcane arrears. It decided to give loans via banks equivalent to the excise duty paid by the mills in the past three years, as per the media reports. "As on June 3, banks have disbursed Rs 4,072 crore interest-free loans to sugar mills," a senior Food Ministry official told PTI. Of which, Rs 1,412 crore and 1,461 crore have been disbursed to mills located in Maharashtra and Uttar Pradesh, the country's top-two sugar producing states, he said. Banks have been given June-end as deadline for sanctioning the entire loan amount. The total interest burden, estimated at Rs 2,750 crore over the next five years, is being borne by the government, as per the media reports.
