Section 27 in The Sugar Development Fund Rules, 1983
27.
(1)The Central Government may provide financial assistance to sugar factories towards payment of interest, in part or in full, on loans given to the sugar factories by scheduled banks, financial institutions, co-operative banks and regional rural banks, in terms of any scheme approved by the Government, from time to time:Provided that such financial assistance shall be for such loans which have been utilised for clearance of cane price arrears and cane price dues of the sugarcane farmers.(2)The Central Government shall provide financial assistance to the lending bank or financial institution through nodal agencies appointed by it, from amongst the scheduled banks and the National Bank which shall be passed on by the concerned bank or the financial institution to the appropriate sugar factories as a credit.(3)The financial assistance to be given to the nodal agencies from the Sugar Development Fund, shall be specified in the scheme referred to in sub-rule (1) and shall be subject to the following conditions, namely :-(a)the nodal agencies shall certify that the loans have been utilised by the sugar factories for clearance of cane price arrears or cane price dues; and(b)the nodal agencies shall certify that the quantum of bank loans to the sugar factories have been disbursed in accordance with the scheme:Provided that in the event of the loan not being used by the factory for payment of sugarcane arrears or dues, the entire interest subvention provided by the Central Government shall be recovered with twelve per cent interest per annum:Provided further that in case the loanee sugar factory is not able to make repayment of the loan as per the repayment schedule, it shall not be entitled for the interest subvention till it regularises the account and once the account is regularised, the said loanee shall be entitled to get the subvention from the date of regularisation till the end of four year period.(4)For the purposes of this rule, the scheme announced by the Central Government vide its notification number 1 (5)/2007 - SPII, dated the 7th December, 2007 and any notification the Central Government may issue from time to time shall apply.[Inserted vide GSR 895(E) dated 19.11.03.]
