Section 17 in The Sugar Development Fund Rules, 1983
17.
(1)The Central Government may, after taking into consideration the recommendations of the Committee and any other relevant factor, accord sanction to the payment of a loan from the Fund to a sugar undertaking in connection with the development of sugarcane [in the area in which its sugar factory or any of its sugar factories is situated] [Substituted vide GSR 599 dated 30.07.2012.] for the purposes of -(a)Setting up of heat treatment plants;(b)rearing of nurseries;(c)pest control measures;(d)incentives to cultivators to switch over to improved varieties of sugarcane;(e)irrigation schemes;(ea)[ purchase of mechanical planters and harvesters;] [Inserted vide GSR 599 dated 30.07.2012.](f)any other scheme or project as may be approved by the Central Government.[Provided that loans from the Fund shall be granted only if the Central Government is satisfied on the basis of the information given in Form III that no financial assistance is available for the purpose from any other agency, and if available, the amount thereof is, in the opinion of the Central Government, inadequate and needs to be supplemented by loans from the Fund.Provided further that the loan from the Fund shall be granted only if the Sugar Undertaking or the State Government contributes a minimum of ten per cent of the loan applied for from its own resources as margin money:Provided also that the Central Government may accord sanction for a loan under this rule to a sugar undertaking in respect of a sugar factory only on one occasion and no further loan under this rule shall be sanctioned during the period in which the previous loan under this rule or a loan under sub-rule (2) of rule 21 in respect of that sugar factory, along with interest thereon, has not been fully repaid:Provided also that a sugar undertaking shall not be eligible to apply for the loan under this rule if it is a defaulter in respect of repayment of Sugar Development Fund loan or payment of Levy Sugar Price Equalisation Fund in respect of any of its sugar factories:Provided also that where a sugar undertaking has not availed the loan sanctioned under this rule in respect of any of its sugar factories, it shall not be eligible for grant of loan under this rule for a period of five years from the date of such sanction.] [Substituted vide GSR 599 dated 30.07.2012.](2)Loan to a sugar undertaking under this rule shall be disbursed only through the Government of the State in which the sugar factory is located, upon the sugar undertaking executing an agreement on such terms and conditions as the Central Government may decided in consultation with the Government of the state, including a provision for monitoring by the State Government of utilisation of the loan, the progress of the scheme for which the loan is advanced, repayment of the loan with interest and remittance to the credit of the Fund.[Provided that the Central Government may appoint any agency for monitoring of utilisation, progress of the implementation of the scheme and achievement of physical and financial targets of the scheme for which the loan is advanced and such agency shall give its report directly to the Central Government] [Inserted vide GSR 599 dated 30.07.2012.](3)[[(a)] [Substituted vide GSR 838(E) dated 14.11.85 for The amount of loan advanced under this rule shall carry such rate of interest as may be decided by the Central Government from time to time.] The repayment of the loan shall commence on the expiry of moratorium. of three years reckoned from the date of disbursement of the said loan and shall be repaid in equal [half yearly instalments not exceeding eight in number and the interest on the loan shall be paid half yearly] [Substituted vide GSR 599 dated 30.07.2012.] after the expiry of one year from the date of drawal of loan](b)[Omitted] [Deleted vide GSR 188(E) dated 9.3.07.](4)An application for loan under this rule shall be submitted in Form-III, with [three copies] [Substituted vide GSR 599 dated 30.07.2012.] thereof to the Government of the State in which the applicant sugar undertakings is located and the State Government may, after scrutiny of the application forward the same and [two copies] [Substituted vide GSR 599 dated 30.07.2012.] thereof with its comments and recommendations to the Member Secretary of the Committee.
