CCEA approves a loan of INR 15,500-Cr for sugar mills
11 March 2019
To boost ethanol capacity in sugar mills, the Cabinet Committee on Economic Affairs (CCEA) on has recently cleared an extra soft loan of INR 15,500 crore under a recently launched scheme. The government will bear an expenditure of INR 3,355 crore as interest subvention for this.
This includes a soft loan of INR 2,600 crore which will be provided to molasses-based standalone distilleries to augment capacity and set up new units.
So far, the food ministry has approved 114 applications for a loan amount of INR 6,000 crore although applications received were for over INR 13,400 crore worth of soft loans.
To augment ethanol capacity, the government has approved additional funds. These additional funds will be in two categories — INR 2,790 crore and INR 565 crore.
The additional funds are part of the government’s measure to address the stress in the sugar sector.
Along with the earlier approval in September 2018 of loans of over INR 6,000 crore, the additional loans of around INR 15,000 crore could help in the creation of another 300-400 crore liters of ethanol capacities in the country.