AP Govt stands guarantee for nine sugar coop mills

Hyderabad, Nov 13 (UNI) The Andhra Pradesh cabinet today decided to extend Government Guarantee in favour of the State Cooperative Bank to provide Rs 221 crore assistance to nine cooperative Sugar factories, whose networth was negative.

This was to meet during the ensuing season working capital requirements of the nine mills - Sri Venkateswara(Renigunta), Vijayrama Gajapathi(Bhimasingi), Chittor, Kovur, Thandava, Anakapalli, NVR, Nizamabad and Cuddapah, official sources said.

All the eleven Cooperative Sugar Mills in the State were estimated to crush 27.35 lakh tonnes of sugarcane during 2006-07 and produce 27.35 quintals of sugar at an average sugar recovery rate of ten per cent, they added.

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