Mumbai: The Maharashtra government has decided to give a bank guarantee for loans to sugar factories in the state, reported Hindustan Times.
The government will provide loans from the State Cooperative Bank to the cooperative sugar mills which are in financial crisis. Loans will be granted at lower interest rates than NCDC (National Cooperative Development Corporation).
Generally NCDC charges 9.74% on loans to sugar mills. Instead now the mills will get loans at 8% interest rate, a senior CMO official said after the Cabinet meeting.
Rajesh Kumar, Additional Chief Secretary of the Cooperation Department, stated that the proposals submitted by the factories would undergo scrutiny at the Sugar Commissioner level before receiving government approval.
