Union Cabinet approves Rs 6,000 crore interest-free loan to sugar mills
Union Cabinet approved an interest-free loan i.e. soft loan to the tune of 6,000 crore rupees to enable sugar mills pay arrears to farmers.
Decision in this regard was taken by Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi. Apart from this decision cabinet also approved hike in prices of Ethanol.
As per this decision, interest on the loan will not be charged for a year but the interest will be borne by the Union government from sugar development fund. The money to be paid as arrears to farmers under this loan will be directed credited in Jan Dhan accounts of farmers.
It should be noted that Sugar mills in India owe over 21,000 crore rupees to farmers because they were not able to sell sugar stocks which have remained unsold due to falling prices of raw sugar in domestic and international markets.
Apart from these decisions Union Cabinet also
- Approved promulgation of negotiable instruments ordinance which to allow courts hear dispute of bouncing of cheques in the payee’s location.
- Allowed three plants to produce urea out of Naptha in Madras Fertilizers Ltd (Tamil Nadu), Southern Petrochemicals Industries Corporation (Andhra Pradesh) and Mangalore Chemical and Fertilizers Ltd (Karnataka) respectively.