Mah govt decides to provide guarantee to 17 sugar factories

Subscribe to Oneindia News

Mumbai, Sep 27 (UNI) Maharashtra Government today decided to provide guarantee to 17 sugar co-operatives, having more net worth and short margin, for availing pre-seasonal loan.

A decision to this effect was taken at the weekly cabinet meeting, chaired by Chief MInister Vilasrao Deshmukh.

The guarantee will be applicable for interest to the tune of Rs 4227 lakh or more. Similarly, guarantee will be given to three sugar units, functional in states outside Maharashtra, for availing loan of Rs 864 lakh and the interest amount thereon.

Proposals of six sugar co-operatives, which had recently applied for guarantee on interest amount of Rs 1277 lakh and above, have been approved.

An official statement issued here said government has asked the sugar co-operatives to make one time payment of the arrears of pre-seasonal loan for the period 2005-06 and earlier. The amount of arrears will be deducted from the sugar sale for the period 2007-08 from those who cannot make the one time repayment.

The government has also said concerned banks will have to appoint monetory control committee for such sugar co-operatives. The committee will include bank representatives, directors of the sugar co-operative and sugar co-operation department officials.

The guarantee will be given on condition that the sugarcane transportation allowance and the subsidies given for enhancing sugarcane due to the sugar co-operatives will be deposited by the government to the concerned banks.

Sugar units, with multi-state activities, will have to crush their cane in Maharashtra first. A committee will be set up consisting concerned bank officials, sugar co-operative directors and co-operation department officials.

The cabinet also approved amendments in the co-operative act as per the Vaidyanathan committee recommendations which calls for defining the functioning, autonomy and regulations for Primary agriculture credit societies.

UNI

Please Wait while comments are loading...