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Lok Sabha
The central government has provided a loan of Rs. 20.89 crore to three sick sugar mills for modernisation and rehabilitation.
The sugar industry has been delicensed w.e.f. August 31, 1998. Entrepreneurs are free to set up sugar mills as per techno-economic viability of their project maintaining a distance of 15 Kms between two sugar mills. Generally sugar mills remain closed or become sick for a variety of factors such as inadequate cane availability, uneconomical size, old age, bad condition of plant and machinery, technical and managerial incompetence etc. It is the responsibility of the entrepreneur to take steps to reopen or revive the mills. The sick mills belonging to private and public sector are covered under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Such sugar mills are required to make a reference to the Board for Industrial and Financial Reconstruction (BIFR) wherever their accumulated losses become equal to or more than the net-worth. If the rehabilitation schemes sanctioned by BIFR provide for any relief/concession from the Ministry, the scheme is considered as per the existing guidelines.
As regards the cooperative sugar mills, a Committee has been constituted by the Department of Food and Public Distribution to consider the proposals of potentially viable sick sugar mills of this sector.
This information was given in Lok Sabha yesterday by Dr. Akhilesh Prasad Singh, Minister of State for Consumer Affairs, Food and Public Distribution.
SBK:CP:2.8
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