The government has issued guidance on restructuring loans of sugar mills
New Delhi:
The government has issued guidance on restructuring loans of sugar mills and stipulating that eligible mills fail to repay their loans for two years and the repayment period is five years. The norms relate to the loans of millers from the sugarcane development fund (SDF).
The total outstanding debt of the SDF is nearly Rs 3,100 crore, including principal and interest, according to an official statement issued Wednesday by the Ministry of Food and Public Distribution.
The ministry has issued guidelines on “restructuring SDF loans under Rule 26 of the SDF Rules 1983”.
It says the guidelines have a provision for a “suspended period of two years followed by five years of repayment”.
These guidelines will be applied uniformly to SDF loans offered by all types of concerns, including cooperative societies, private limited liability companies, and limited liability companies. mass term.
The interest rate will be changed to the interest rate at the prevailing rate of the bank on the date of approval of the recovery package.
“These points will facilitate reducing the debt burden for insolvent sugar mills,” the statement said.
The sugar mill has been continuously losing money for the last three financial years or its net asset value is negative but the mill has not closed or has not stopped pressing for more than two sugarcane crops, excluding the current crop. condition. to apply for restructuring, the statement said.
