Government has actually issued guidelines for restructuring sugar mills' loansNew Delhi: Government has provided guidelines for restructuring of loans taken by sugar mills and supplying eligible defaulting factories with a two-year moratorium and payment time of 5 years.
The norms pertain to loans taken by millers from the sugar development fund (SDF).
The overall exceptional default from the SDF is nearly Rs 3,100 crore, including principal and interest, according to an official declaration provided on Wednesday by the department of food and public distribution.The department has actually come out with the guildelines for for restructuring of SDF Loans under Rule 26 of the SDF Guidelines 1983 .
It said that the standards have arrangement for a two-year moratorium and then 5 years of payment .
These standards will be consistently suitable for SDF loans availed by all kinds of issues, including co-operative societies, private limited business and public limited companies.The interest rate will be changed to the interest rate according to the dominating bank rate on the date of approval of the rehabilitation package.
These points will help with decrease of the debt burden over these defaulting sugar mills, the declaration said.A sugar factory that has been sustaining cash losses constantly for the last 3 fiscal years or factory's net worth is negative, however the factory is not closed or has actually not ceased to crush cane for more than two sugar seasons, excluding the current sugar season is qualified to request restructuring, the declaration stated.