Govt to give relief on interest payment to poultry industry

New Delhi, Mar 26 (UNI) The Centre has decided to grant a one-time reduction of four percentage points in the interest payment liability on the bank loans of all types taken by the poultry units hit by avian influenza.

This will apply to accounts of all poultry units with all banks including commercial banks, cooperative banks and Regional Rural Banks ( RRBs), this was announced by Union Minister of Agriculture Sharad Pawar after a meeting with the representatives of the poultry industry held at Krishi Bhawan this afternoon.

The Minister said the amount required for this purpose will be released to the banks for crediting to all such accounts very soon.

This measure has been announced in view of a few instances of outbreak of avian influenza in limited areas of the country which have had an extremely damaging effect on the poultry industry in the country resulting in steep fall in the demand for and prices of poultry products. As a result poultry units throughout the country are passing through an extremely serious crisis.

The Reserve Bank of India has also issued instructions to provide relief to the poultry industry in the wake of the outbreak of avian influenza. These include a moratorium of one year on payment of principal and interest (for term loans and working capital due to all scheduled banks and RRBs). The same will be considered separately for district central cooperative banks and urban cooperative banks.

Conversion of working capital into term loan and making them payable over three years will be permitted. The first year of repayment would be after the expiry of the moratorium period.

Reschedulement of term loans availed by poultry units over an additional period of two years from the agreed tenor of the term loan.

After conversion of working capital into term loan, poultry units will be permitted to draw additional working capital depending on commercial viability of each unit. Barring willful default, defaulted accounts will not be treated as NPAs.

UNI AJ YA KN1917