Authorities has issued pointers for restructuring of loans taken by sugar mills and offering eligible defaulting factories with a two-year moratorium and reimbursement time of 5 years. The norms pertain to loans taken by millers from the sugar growth fund (SDF).
The whole excellent default from the SDF is almost Rs 3,100 crore, together with principal and curiosity, based on an official assertion issued on Wednesday by the division of meals and public distribution.
The division has come out with the guildelines for “for restructuring of SDF Loans below Rule 26 of the SDF Guidelines 1983”.
It stated that the rules have provision for a “two-year moratorium after which 5 years of reimbursement”.
These pointers will probably be uniformly relevant for SDF loans availed by all forms of considerations, together with co-operative societies, non-public restricted firms and public restricted firms.
The speed of curiosity will probably be modified to the rate of interest as per the prevailing financial institution price on the date of approval of the rehabilitation package deal.
“These factors will facilitate discount of the debt burden over these defaulting sugar mills,” the assertion stated.
A sugar manufacturing facility that has been incurring money losses constantly for the final three monetary years or manufacturing facility’s internet value is unfavorable, however the manufacturing facility just isn’t closed or has not ceased to crush cane for greater than two sugar seasons, excluding the present sugar season is eligible to use for restructuring, the assertion stated.