Fund approved by Cabinet to finance sugar mills to enhance ethanol production capacity
Both the interest subvention would be payable @6% per annum or 50% of the commercial rate of interest charged by banks, whichever is lower, as per scheme approved by CCEA in June 2018.
- Country:
- India
The Cabinet Committee on Economic Affairs, chaired by Hon'ble Prime Minister Shri Narendra Modi has given its approval for funds amounting to Rs.2790 crore towards interest subvention for extending indicative loan amount of Rs.12900 crore by banks to the sugar mills under “Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity” for the 268 applications/proposals, in addition to Rs.1332 crore already approved by CCEA in June, 2018.
CCEA has also approved Rs.565 crore towards interest subvention for extending indicative loan amount of Rs.2600 crore by banks to the molasses-based standalone distilleries to augment capacity through installation of incineration boilers and other methods in the existing distilleries for achieving ZLD and additional equipment for ethanol production as well as for setting up of new standalone distilleries for ethanol production. A separate scheme for the molasses-based standalone distilleries would be formulated accordingly by Department of Food & Public Distribution.
Both the interest subvention would be payable @6% per annum or 50% of the commercial rate of interest charged by banks, whichever is lower, as per scheme approved by CCEA in June 2018.
The approval of interest subvention will help in:
improving the liquidity of sugar mills by way of value addition to their revenues from the supply of ethanol under Ethanol Blended Petrol Programme (EBP);
reducing sugar inventories and thereby facilitate timely clearance of cane price dues of farmers and
achieving 10% blending target of EBP.
(With Inputs from PIB)
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