Cabinet approves Rs 2,790 crore interest subvention on loans to sugar mills

New Delhi: The Cabinet Committee on Economic Affairs on Thursday approved Rs 2,790 crore interest subvention for extending loans by banks to sugar mills. This is in addition to Rs 1,332 crore already approved by the Cabinet Committee on Economic Affairs (CCEA) in June 2018.

The interest subvention is for extending loans of Rs 12,900 crore by banks to sugar mills under the scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity.

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.