New Delhi, Oct 06: Centre today decided to provide a Rs 2,563 crore assistance package to state governments to clear sugarcane price arrears for the year 2002-03. This includes additional market borrowings of about Rs 1,885 crore by state governments and Rs 678.06 crore already granted to states which are following state advised prices (SAP) scheme.
Centre had approved a one-time assistance to UP, Uttaranchal, Haryana, Punjab and Bihar to clear cane price arrears of private sugar factories in respect of difference between the state advised price and statutory minimum price (SMP) for 2002-03 sugar season.
This is by way of a soft loan at concessional interest rate of 4 per cent per annum and with an initial moratorium of three years and repayable in three years, an official release said.
Bureau Report