Govt affords debt restructuring and one-time settlement to sugar mills for loans taken beneath SDF

Issuing the revised operational pointers for restructuring of SDF loans on February 28, the meals ministry stated,

“Restructuring of the SDF loans could be within the type of capitalisation of steadiness curiosity, together with precept and re-schedulement,” it stated.

In case of restructuring, the penal curiosity will likely be waived off, it stated.

Below the restructuring possibility, the federal government has provided a moratorium interval of 24 months for cost of steadiness principal quantity and curiosity quantity. Nonetheless, regular curiosity will proceed to accrue throughout the moratorium interval.

“Stability mortgage quantity, together with principal and curiosity, will likely be divided into equal month-to-month installments for 5 years after the moratorium interval,” the rules stated. In case of one-time settlements, the federal government stated if sugar mills clear their dues inside six months, the penal curiosity will likely be waived off. Nonetheless, the ministry stated, solely sugar factories which were incurring money losses constantly for the final three monetary years, or their internet price is unfavourable, will likely be thought of for the choice.

Furthermore, sugar factories shouldn’t cease crushing or stay closed for greater than two sugar seasons, excluding the present one.

Hailing the choice, the Nationwide Federation of Cooperative Sugar Factories (NFCSF) President Harshvardhan Patil stated, “Each the above schemes will deliver nice reduction to the co-operative factories throughout the nation. Together with this, they are going to be eligible to get the good thing about authorities schemes…”

The revised pointers will present large reduction to 33 cooperative sugar mills throughout the nation by restructuring excellent mortgage quantities of Rs 1,378 crore.

Of the overall excellent mortgage of those cooperative mills, the principal quantity is Rs 566.83 crore and the curiosity on the excellent mortgage is Rs 191.79 crore whereas the extra curiosity on it’s Rs 619.43 crore, he stated in an announcement.

Among the many states concerned within the complete excellent loans, Maharashtra has Rs 861.23 crore, Uttar Pradesh Rs 202.48 crore, Tamil Nadu Rs 113.15 crore, Karnataka Rs 103.20 crore, Gujarat Rs 39.37 crore and steadiness in the remainder of the states, together with Andhra Pradesh, and Odisha, he added.