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.
UNI MP SR PV HT1232