Section 21 in The Sugar Development Fund Rules, 1983
21.
(1)A potentially viable sick sugar undertaking shall be eligible for a loan for the modernization or rehabilitation of plant and machinery:Provided that the loan from the Fund has been recommended in the rehabilitation scheme for the potentially viable sick sugar undertaking by the Board for Industrial and Financial Reconstruction or the Committee for rehabilitation, as the case may be:Provided further that the scheme or project for such modernization or rehabilitation of its plant and machinery is approved for financial assistance by a financial institution or a scheduled bank under its relevant scheme [omitted] [The words or sponsored by the Technology, Information, Forecasting and Assessment Council in respect of Scheme Mission Mode Project on Sugar Production Technologies of the Department of Science and Technology for modernization and rehabilitation of its plant and machinery omitted vide GSR 599 dated 30.07.2012.]Provided also that a sugar undertaking shall not be eligible for a loan under this rule if more than one loan under rule 16 remains to be fully repaid(2)A potentially viable sick sugar undertaking shall be eligible for a loan for the sugarcane development:Provided that for a scheme or project for sugarcane development in the rehabilitation scheme for the potentially viable sick sugar undertaking sanctioned by the Board for Industrial and Financial Reconstruction or recommended by the Committee for rehabilitation, a loan from the Fund has been recommended:Provided further that a sugar undertaking shall not be eligible for a loan under this rule if more than one loan under rule 17 remains to be fully repaid.(3)A sugar undertaking, which has availed a loan under sub-rule (1) or sub-rule (2), shall not be eligible to apply for a loan under this rule on any subsequent occasion.(4)Any eligible sugar undertaking under sub-rule (1) shall make an application for the loan for modernization or rehabilitation to the Committee [Omitted] [Omitted vide GSR 67 (E) dated 29.01.03 [for rehabilitation]] in Form II-A along with [two] [Substituted vide GSR 599 dated 30.07.2012.] certified copies thereof.(5)Any eligible sugar factory in connection with which the loan has been applied for under sub-rule (2) shall make an application for the loan for sugarcane development in form III-B along with [two] [Substituted vide GSR 599 dated 30.07.2012.] certified copies thereof to the State Government in which the sugar undertaking is located and the State Government may forward the application after such scrutiny as it deems necessary, with its comments and recommendations to the Member-Secretary of the Committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.](6)The Member-Secretary of the committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.] shall, as soon as may be, after receipt of an application referred to in sub-rule (4) or sub-rule (5), place the application before the said Committee along with his comments if any, for the Committee's consideration.(7)The Committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.], before making a final decision on an application, shall satisfy itself that adequate reliefs, or concessions from the Central Government, State Government, any scheduled bank or other bank, financial institutions or donations from the employees of the undertaking and other agencies, if any, have-been provided in the rehabilitation scheme and such reliefs or concessions or donations have been accepted by the concerned agencies to be provided to the sugar undertaking.(8)It shall be open to the committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.] before making a final decision on an application, to call for any further information from the applicant or any other concerned agency, if necessary.(9)The final decision of the Committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.] on any application under this rule shall be submitted to the Central Government in the form of recommendation.(10)The Central Government may, after consideration of the recommendation of the Committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.] and any other relevant fact in respect of a project for modernization or rehabilitation, authorise payment to a sugar undertaking of such amount of loan, not exceeding the amount required by the financial institution or the scheduled bank to be contributed by such sugar undertaking as promoter's contribution, Provided that the loan from the Fund under this - rule shall not exceed sixty per cent of the eligible project cost:Provided further that the loan from the Fund shall be granted only if the sugar undertaking contributes a minimum of twenty percent of the project cost from its own resources as promoter's contribution:Provided also that a loan from the Fund shall not be granted for the purpose of repayment of any loan in any form availed by the sugar undertaking or interest on any such loan in any form, whether availed from the Fund or from financial institutions, banks or any other agency including Government:Provided also that the loan from the Fund shall be granted only if, the sugar undertaking has repaid all the sums, which have become due in respect of the Fund and the Levy Sugar Price Equalisation Fund.(11)(i)The loan for modernization or rehabilitation shall be disbursed by the Central Government to the concerned sugar undertaking or paid by it to the financial institutions for disbursement to the concerned sugar undertaking, either in lump sum or in two or more instalments as may be considered necessary by the Central Government, after an agreement is executed between the Central Government, the concerned State Government, the participating financial institutions or scheduled banks and the sugar undertaking concerned.(ii)The agreement referred to in clause (i) of this sub-rule shall contain the terms and conditions with regard to the period of repayment including the number and amount of instalments, payment of interest, the manner of such repayment or payment and any/other matter incidental to the loan.(iii)[ Omitted] [Deleted vide GSR 188(E) dated 9.3.07.](iv)The repayment of the loan for modernization or rehabilitation together with interest thereon, shall commence after the expiry of such period as may be decided by the Central Government after due verification by financial institution subject to a maximum of five years, reckoned from the date of disbursement of the loan from the Fund and the loan from the Fund along with the interest due thereon, shall be recoverable in half-yearly instalments not exceeding ten in number.(v)[Omitted] [Omitted vide GSR 599 dated 30.07.2012.](12)The Central Government may, after consideration of the recommendation of the Committee [****] [The words 'for rehabilitation' omitted vide GSR 67 (E) dated 29.01.03.] and any other relevant fact in respect of a project for sugarcane development authorise payment to a sugar undertaking of such amount of loan not exceeding ninety per cent of the eligible project cost and not exceeding the amount, if any, specified under rule 17;Provided that the loan from the Fund shall be granted only if the sugar undertaking or the concerned State Government contributes a minimum of ten per cent of the project cost from its own resources:Provided further that the loan from the Fund shall not be granted for the purpose of repayment of any loan in any form availed by the sugar undertaking or interest on any such loan in any form, whether availed from the Fund or from financial institutions, banks or any other agency including Government:Provided also that the loan from the Fund shall be granted only if the sugar undertaking has repaid all the sums, which have become due in respect of the Fund and the Levy Sugar Price Equalisation Fund.
