The Department of Food and Public Distribution has issued guidelines for restructuring of loans taken by mills from the Sugar Development Fund (SDF), providing a moratorium for two years and then repayment in five years to eligible defaulting factories.
The guidelines for restructuring has been issued to facilitate rehabilitation of financially weak but economically viable sugar mills which have availed loans under the Sugar Development Fund Act, 1982. The outstanding amount of default of SDF loans is Rs 3,068.31 crore (as on November 30, 2021) which include Rs 1249.21 crore as principal amount, Rs 1,071.30 crore as interest and Rs 747.80 crore as additional interest due to default. Waiver of additional interest in full will be given to the eligible sugar factories.
These guidelines will be uniformly applicable for SDF loans availed by all types of concerns, including Co-operative Societies, Private Ltd Companies and Public Ltd Companies. The rate of interest will be changed to the interest rate as per the prevailing bank rate on the date of approval of the rehabilitation package. These points will facilitate reduction of the debt burden over these defaulting sugar mills.
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