• search

Govt proposes to give 4 per cent grant to poultry industry

Written by: Staff

New Delhi, Apr 16 (UNI) The Central Government has proposed to grant a one time interest of 4 per cent per annum to the bird flu rampaged poultry units availing loans from banks.

The grant is given on the outstanding principal amount as on March 31, 2006, and does not include any part of the principal amount that has become due.

Instructions regarding the scope of the grant and the manner in which it shall be calculated will be issued separately and disbursed to the banks, official sources said.

The government has also asked the financial institutions to convert into term loans, the principal and interest on the working capital loans, as well as installments and interests on term loans, that have fallen due, on or after the onset of the bird flu.

These converted loans shall be recovered in installments based on projected future inflows over a period of up to three years with an initial moratorium of up to one year.

The remaining unpaid portion of the term loan shall be rescheduled with a moratorium period up to one year, depending upon the cash flow generating capacity of the unit, the Government has said.

The conversion shall be completed on or before June 30, 2006, and the converted loans may be treated as current dues.

These borrowers will also be eligible for fresh finance.

All these relief measures shall be extended to all accounts of poultry industry, which are classified as Standard accounts as on March 31, 2006.

The 40,000 crore Indian poultry industry, which is ranked 17th in the world, and consists of 3 per cent of the world poultry production, has incurred a loss of Rs 9,000 crore due to the Avian Influenza.


For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more