Scheme for Extending Financial Assistance to Sugar Undertakings – SEFASU 2014
GoI issued Operational Guidelines of the scheme SEFASU-2014 vide their letter No. 3/77/2013-AC dated 09 January 2014 advising financing banks to provide loans to sugar mills for the clearance of cane price arrears of previous sugar seasons and timely settlement of cane price of current sugar season relating to Fair and Remunerative Price (FRP) fixed by the Central Government. The loan will be sanctioned to the sugar mills, which have been functional during 2013-14 sugar season and loan would be to the extent of last three sugar seasons' excise duty, cess and surcharge on sugar (including notional equivalence for exports or availed Cenvat ). The loan is to be sanctioned for a period of 5 years including 2 years moratorium period. GoI provides interest subvention up to maximum of 12 % or actual rate whichever is lower. Loans sanctioned by 30 June 2014 and disbursed by 30 September 2014 by the lending banks would be eligible for interest subvention facility. State Bank of India (SBI) is appointed as “Nodal Bank” for interacting with Department of Food and Public Distribution and managing the subsidy funded for onward reimbursement to respective banks. NABARD would coordinate on behalf of Cooperative Banks and Regional Rural Banks (RRBs) and would submit claims to SBI for reimbursement.
Scheme of Soft Loan to sugar mills to facilitate payment of cane dues of the sugar season 2014-15
GoI notified a scheme on 23 June 2015 for extending soft loan to sugar mills for payment of cane price arrears of sugar season 2014-15 relating to the Fair and Remunerative Price (FRP) of sugarcane fixed by the Central Government to the sugarcane farmers. The loan will be sanctioned to the sugar mills which have been functional during 2013-14 and 2014-15 sugar season and the quantum of loan would be equivalent to 11% of their reported production of white sugar in sugar season 2013-14 as certified by Central Excise authorities concerned. There will be moratorium of one year on repayment of the loan. Loans sanctioned and disbursed by 30th September 2015 by lending banks, pursuant to Gazette notification, would be eligible for interest subvention facility. Interest subvention upto 10% simple interest or the actual rate charged by the banks , whichever is lower, shall be provided to the sugar mills for a maximum period of one year by GoI. Interest subvention will be released on quarterly basis through the nodal bank, State Bank of India. The operational guidelines in respect of the scheme have been issued by NABARD and forwarded to Rural Cooperative Banks and Regional Rural Banks as NABARD would coordinate on behalf of them.