Some sugarcane co-ops likely to get five more years to pay off loans
The stage is set for Nabard to lift the curtain off its Rs 1,846-crore term loan restructuring package for the financial year beginning April 1.
By TNN |
PUNE: The stage is set for Nabard to lift the curtain off its Rs 1,846-crore term loan restructuring package for the financial year beginning April 1. On Thursday, the final proposal to this effect was submitted by the state co-operative department to the agency. The scheme will be applicable to 88 co-operative sugar factories.
The Centre had announced a policy for restructuring term loans of outstanding co-operative sugar factories as on April 1, 2005. The restructuring period was up to 15 years, including a maximum moratorium of two years. But most of the co-operative sugar factories could not repay the first instalment of the restructured term loans, which was due on April 1, 2007, due to a drop in sugar prices in 2006-07.
Which is why the Centre decided to revisit the issue and appointed a committee for the same. A technical panel headed by Maharashtra���s sugar commissioner was also formed. ���According to the revised package of restructured term loans, repayment period will be up to 15 years. It may be extended up to 20 years in some cases,��� said minister of co-operatives, Patangrao Kadam.
As only those mills that are financially sound are eligible for the package, the department is currently assessing eligibility standards of six factories. ���We are thinking of giving one time settlement to these factories from the Maharashtra State Co-operative Bank to reduce their burden,��� said Mr Kadam.
Explaining the entire procedure, managing director, Maharashtra State Co-operative Sugar Factories Federation, Prakash Naiknavare said, ���The rate of interest chargeable on restructured loans will be 10% while the Centre will give interest subvention up to 3% only on loans having original contractual interest rates exceeding 10%.��� If another six factories are brought under the ambit of the package, then the restructured loan amount will go up to Rs 2,450 crore, added Mr Naiknavare. Proposals of eight co-operative sugar factories, however, have already been rejected by the technical committee.
Term loans of co-operative banks, commercial banks, FCI, IDBI, ICICI are all eligible for the restructuring. What remains a worry for the government is the surplus production of sugarcane this year. Sugar commissioner Rajgopal Devara said that by May-end, about 15 lakh tonnes of sugarcane would be left uncrushed. ���About 760 lakh tonnes will be crushed by May-end. Like last year, this may force us to keep the crushing season on till June 10. Last year, we crushed 10 lakh tonnes of sugarcane in 10 days,��� said Mr Devara. The problem of sugar glut is mainly being faced by Ahmednagar, Solapur and Osmanabad districts. Audit reports of many CSFs have been pending for many years. Mr Kadam put it on record that the government had blacklisted 168 errant government auditors.
The Centre had announced a policy for restructuring term loans of outstanding co-operative sugar factories as on April 1, 2005. The restructuring period was up to 15 years, including a maximum moratorium of two years. But most of the co-operative sugar factories could not repay the first instalment of the restructured term loans, which was due on April 1, 2007, due to a drop in sugar prices in 2006-07.
Which is why the Centre decided to revisit the issue and appointed a committee for the same. A technical panel headed by Maharashtra���s sugar commissioner was also formed. ���According to the revised package of restructured term loans, repayment period will be up to 15 years. It may be extended up to 20 years in some cases,��� said minister of co-operatives, Patangrao Kadam.
As only those mills that are financially sound are eligible for the package, the department is currently assessing eligibility standards of six factories. ���We are thinking of giving one time settlement to these factories from the Maharashtra State Co-operative Bank to reduce their burden,��� said Mr Kadam.
Explaining the entire procedure, managing director, Maharashtra State Co-operative Sugar Factories Federation, Prakash Naiknavare said, ���The rate of interest chargeable on restructured loans will be 10% while the Centre will give interest subvention up to 3% only on loans having original contractual interest rates exceeding 10%.��� If another six factories are brought under the ambit of the package, then the restructured loan amount will go up to Rs 2,450 crore, added Mr Naiknavare. Proposals of eight co-operative sugar factories, however, have already been rejected by the technical committee.
Term loans of co-operative banks, commercial banks, FCI, IDBI, ICICI are all eligible for the restructuring. What remains a worry for the government is the surplus production of sugarcane this year. Sugar commissioner Rajgopal Devara said that by May-end, about 15 lakh tonnes of sugarcane would be left uncrushed. ���About 760 lakh tonnes will be crushed by May-end. Like last year, this may force us to keep the crushing season on till June 10. Last year, we crushed 10 lakh tonnes of sugarcane in 10 days,��� said Mr Devara. The problem of sugar glut is mainly being faced by Ahmednagar, Solapur and Osmanabad districts. Audit reports of many CSFs have been pending for many years. Mr Kadam put it on record that the government had blacklisted 168 errant government auditors.
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