UP to draft policy to bail out sick pvt sugarmills

Lucknow, Oct 27 (UNI) The Uttar Pradesh government today decided to draft a new policy to waive off loans on sick private sugar mills which are at present under the Board of Industrial Financial Reconstruction (BIFR), in an effort to revive them.

The state cabinet has approved the proposal for the new policy to bail out 12 sugarmills in private sector, which were shut down between 1995 and 2000.

The new policy would enable the UP government waive loan interest worth about Rs 10 crore to these mills given by the state Sugar Fund, besides extending incentives for their rehabilitation. The new policy would certainly help the entire sugar industry, sources maintained.

The state cabinet meeting chaired by chief minister Mulayam Singh Yadav also decided to provide one per cent trade tax (TT) rebate on hosiery goods.

It also decided to amend the May 5, 2006 notification about TT relaxation on the units of the Special Economic Zones (SEZs).

The government has approved setting up of a high-power empowered committee under the chairmanship of the Industrial Development Commissioner (IDC) for development of public-private partnership for infrastructure development in UP.

Other members of the committee would be the secretaries of the finance, excise and IT departments.

The cabinet approved a proposal from the urban development department to relax norms to construct an office building at the Vikramaditya Marg, Lucknow to the height of 12 meters against the norm of 7 meters.

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