Section 23(4) in The Sugar Development Fund Rules, 1983
(4)[ A sugar undertaking shall not be eligible to apply for a loan under this rule for one or more of the following reasons or purposes, namely :-(a)a second hand project, equipment or machinery:Provided that a sugar undertaking shall be eligible to apply for a loan for a project where second hand equipment or machinery has been used or is proposed to be used, subject to the following conditions, namely:-(i)use of such second hand machinery or equipment shall not change the overall character of the project, which shall essentially consist of new plant, machinery and equipment;(ii)it shall technically be certified that the use of the second hand machinery or equipment shall not affect the overall efficiency and life of the project;(iii)the useful life of the second hand machinery or equipment so used shall not be less than the term of repayment of sugar development fund loan;(iv)subject to fulfilment of conditions specified in clauses (i) to (iii), the estimated or actual cost of machinery or equipment which are not new shall be deducted from the estimated or actual cost of the project before arriving at the eligible project cost for the purpose of sugar development fund loan;(b)refinancing;Explanation. - For the purpose of this clause, the term 'refinancing' includes availing of loan for repayment of loan taken from any financial institution or scheduled bank before applying to a financial institution or bank for appraisal in which Sugar Development Fund component is proposed, but shall not include a 'bridge loan' taken in lieu of Sugar Development Fund component after submitting an application to the Standing Committee on Sugar Development Fund.(c)financing of cost over run;(d)project commissioned prior to the date of application under these rules;(e)if such sugar undertaking is a defaulter in respect of repayment of loan availed under Sugar Development Fund or in payment of any dues under the Levy Sugar Price Equalisation Fund in respect of any of its sugar factories.]
