Lok Sabha Question No. 44 (STARRED), answered on 2023-12-06
Subject: Financial Assistance to Sugar Mills
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Rajeshbhai Naranbhai Chudasama

## GOVERNMENT OF INDIA MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA STARRED QUESTION NO.44

## TO BE ANSWERED ON 6TH DECEMBER, 2023

## FINANCIAL ASSISTANCE TO SUGAR MILLS

## *44.  SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of  CONSUMER  AFFAIRS, FOOD  AND  PUBLIC DiSTRiBUTiON aq viral qm+, @maN tiT&f+q fqvwr IHt be pleased  to state:

- (a) whether there is  a  scheme to  provide financial assistance and loans to sugar mills  under Sugar Development Fund (SDF);
- (b) if so, the number of sugar mills given financial assistance along with  the amount provided, mill-wise;
- (c) the present status of the SDF scheme;
- (d) the amount of  cess collected from sugar mills along with the actual amount utilised and the amount left  unused under SDF scheme; and
- (e) the fate of balance amount in SDF scheme?

ANSWER MINISTER OF  COMMERCE &  INDUSTRY, CONSUMER  AFFAIRS,  FOOD & PUBLIC DISTRIBUTION AND TEXTILES (SHRI  PIYUSH GOYAL)

(a) to (e): A statement  is laid on the Table of the House.

STATEMENT REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO (e)  OF  THE STARRED QUESTION NO. 44  DUE FOR ANSWER ON 06n12n2023 IN THE LOK SABHA.

(a),(b)&(c): Under Sugar Development Fund Act,  1982, loans were given to sugar mills,  inter-alia, for Modernisation Cum Expansion of sugar mill,  Cane Development, Bagasse-Based Cogeneration power projects, production of Anhydrous Alcohol or Ethanol/Zero Liquid Discharge (ZLD) plant.

Under the Scheme, an amount of t  9,OO 5 crores was disbursed to the sugar mills as SDF Loans as per details given below

| S.No   | Type of SDF Loan   | Amount Disbursed (in crores)   |
|--------|--------------------|--------------------------------|
| 1      | Modernization      | f 3,375                        |
| 2.     | Cane Developrnent  | t ll074                        |
| 3      | CoPgeneration      | f 3,369                        |
| 4,     | Ethanol/ZLD        | f 1l187                        |

Sugar Mill wise data of disbursement during the last five years is annexed.

The scheme for providing financial assi;brIce to  the  sugar mills has been closed. However, the SDF loan cases where Administrative Approval had already been issued before closUre were considered in the Department. At  present, no Administrative Approval is pending for  loan disbursement.

Despite the Scheme getting  closed, Governrnent has taken multiple effective measures in the form of policy intervention from time to time to help and assist  sugar industry  and cane farmers:

- in Central Government fixes Fair  and  Remunerative Price  (FRP) of  sugarcane having regard to  the  factors mentioned in Clause 3(1) of the Sugarcane (Control) Order, 1966.
- ii. Minimum Selling Price of sugar was fixed to control falling exmill prices of sugar due to surplus production  & accumulation of cane arrears (initially at ? 29/ kg  w.e.f  07-06-2018; revised to  f  31/kg w.e.f.  14.D2-2019).
- Financial assistance  of more than f  18,000 crore extended to mills resulting in clearance of farmers' dues during 7 years i.e.  sugar  season  2014-15  to  2020-21., iii.

- iva Diversion of surplus sugar to  production of ethanol led to improved financial conditions of sugar mills. As a result, they are able to clear cane-dues earlyn ,
- Va Under ethanol  interest  subvention scheme,  Government bears interest subvention for  five  years including one year moratorium against  the  loan  availed  by  project proponents from banks/financial institutions @ 6%  per  annum  or  50%  of the rate of interest charged by banks/financial institutions, whichever  is lower.
- Due to  this  Scheme, ethanol production capacity in  the country  has increased to 1380 crore litres  which  includes 875 crore litres from sugar based feedstocks and 505 crore litres
- from grain based feedstocks. vi.
- This has led to achievement of 12% blending of ethanol with petrol with  production of more than 500 crore litres  of ethanol which was just 38 crore litres in 2013-14. vii.
- Rural economy has  improved due  to  this  programme as investment of more than ? 30,000 crore has come which has also  created  thousands of  employment opportunities in remote  areasu Viiia
- ix.
- As a result of these measures, more than 99.90/, of cane dues up to  sugar seasons 2021-22 have been cleared. For the previous sugar season 2022-23, a  payment to  the  tune of about Rs. 1.12 Lakh erores has been released to sugarcane farmers thereby clearing more than 98% cane dues of the farmerse
- In addition, Government of India has protected interest of domestic consumers by keeping the  retail  prices of  sugar stable. India has among the cheapest sugar prices in  the worlda X8

Thus, Government of  India has finely balanced the  interests of farmers, consumers as well as sugar industry.

(d) & (e): A sugar cess amounting to ?12,834 crore was collected upto 30.06.2017 (cess was abolished by Central Government on introduction of Central Goods and Services Act, 2017). Out of this,  till  31.03.2018, an amount of tlO,196  crore was transferred to the Sugar Development Fund and was utilised for  implementation of various schemes under SDF Act, 1982 and SDF Rules, 1983, The balance in cess account was transferred to the Consolidated Fund of India. Since 2018-19, the expenditure under the Scheme was met through normal budgetary provision.

######

## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PART (a),(b)&(c) OF  THE  STARRED QUESTION NO.44 FOR  ANSWER ON  06.12.2023 IN  THE  LOK  SABHA REGARDING FINANCIAL ASSISTANCE TO SUGAR MILLS

## Detail of Sugar Mills  that were given financial assistance during the year 2018-19

|   S.No. | 1 Name of the Sugar Mill                                                                                           | Type of Loan     | Amount Disbursed   |
|---------|--------------------------------------------------------------------------------------------------------------------|------------------|--------------------|
|       1 | M/s Athani Sugars Limited, Vishnuanna Nagar, Navalihal 591234, Tq-Athani, Distt-Belgaum, Karnataka                 | Modernisation    | { 3,60,53,894      |
|       2 | M/s Sadashivrao Mandklik Kagal Taluka SSK Ltd., Sadashivnagar,Hamidwada - 1 Ko'lage, Distt. - K,Ih,p',, Maha,asha, | Cane Development | ? 1,95,66,000      |
|       3 | M/s DCM Shriram Ltd. DSCL Sugar- Ajbapur,Village-AjbapurP.O- Mullapur, I LakhimpurKheri 261505, Uttar Pradesh      | _ Co-Generation  | ( 44,22,208        |
|       4 | M/s Gem Sugars Ltd. Kundaragi village, Bijjgi Taluk BagalkotDisH. 587204                                           | Ethanol/ZLD      | { 2,08,83,500      |
|       5 | village.-MogdalNH No-9 taluka &DisH.- Bidar, Karnataka                                                             | Co-Generation    | { 4,25,98,000      |
|       6 | M/s CoromandalSugar Ltd., SurveyNo. 141, Makkavalli-571426, Distt.- Mandy% Karnataka                               | Co-Generation    | ( 16,14,21,000     |
|       7 | M/s Bilagi SugarMills Ltd., Badagandi village- Bilagi- Taluka, Bagalkot Digrid, Karnataka                          | Modemtisation    | ? 14,26,46,000     |
|       8 | M/s Siddhi Sugar and Allied Industries Ltd., Ujana, Tal. Ahmedpur, Dist. Latur, Maharashtra                        | Modemisation     | ? 7,73,54,000      |
|       9 | M/s Bilagi sugar mills Ltd., badagandi ,ill,g,- Bil,gi-T,1'k,, B,g,lk,t di,t. Karnataka                            | I C,._G'''ti,.'  | ? 27.41.56.792     |

| S.No.   | Name of the Sugar Mill                                                                                                                                                                                                                                          | Type of Loan       | Amount Disbursed   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|
| s       | village- Bilagi- Taluka, Bagalkot District, Karnataka                                                                                                                                                                                                           | Modernisation      | { 8,42,39,000      |
| s       | village- Bilagi-Taluka, Bagalkot dist. I Karnataka                                                                                                                                                                                                              | Co_Generation      | ? 1,35,54,208      |
| s       | Ambikanagar, A/P- Jagdamba factory, Dist.- Ahmednagar, Maharashtra                                                                                                                                                                                              | Ethanol/ZLD        | ? 12>741 159000    |
| s       | Alathukombai Village, Sathyamangalam Taluk, Erode District, Tamil Nadu                                                                                                                                                                                          | Modernisation      | { 11,39,62,000     |
| s       | Rajpura, DisH. Badaun- 202527, Uttar I Pradesh                                                                                                                                                                                                                  | Modemisation       | { 4,70,24,000      |
| s       | b::: e sl•? •2 : ! :la n ) ][•••HB) i S t • Si taP U r ) 1Un arC                                                                                                                                                                                                | On Glen emtion     | ? 54,22,24,000     |
| s       | ; ?!7 0 :ph:iF:hnal i: h t :•: is tw JrIII!I h Ir1rI e d n a g a ruC                                                                                                                                                                                            | :iow GIrene m tion | ( 19,91,41,000     |
| s       | Ltd., Maheshnagar, Ujana, Tq. Mhmedpur, Dist. Latur, Maharashtra                                                                                                                                                                                                | Ethanol/ZLD        | { 5,17,80,000      |
| 18.     | M/s Sahakar Maharshee Shivajirao Narayanrao Nagawade Sahakari Sakhar Karkhana Limited (Formerly known as The Shrigonda Sahakari Sakhar Karkhana Ltd.), At Shrigonda Factory, Post Shrigonda Sakhar Karkhana, Taluka Shrigonda, District Ahmednagar, Maharashtra | Co-Generation      | ? 11,83,62,000     |
| s       | Hariawan, Vill.- Hariawan, Hardoi, Uttar Pradesh                                                                                                                                                                                                                | Ethanol/ZLD        | ? 39,99,21,500     |
| s       | Chemicals Ltd., Siddapur, Tq. Jamkhandi Dist: Bagalkot, Karnataka-587302                                                                                                                                                                                        | Cane Development   | ( 99,00,000        |

| S.No.   | Name of the Sugar Mill                                                                                                                                                                                     | Type of Loan   | Amount Disbursed   |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------|
| 21.     | M/s Raosahebdada Pawar Ghodganga SSKLtd., Raosahebnagar, Nhavare,Tal- Shirur, Dist. Pune, Maharashtra(Formerly known as M/s Ghodganga SSK Ltd., Raosahebnagar,Nhavare, Tal-Shirur, Dist. Pune, Maharashtra | Co-Generation  | ? 14,41,20,792     |
| 22.     | M/s DhampurSugar Mills Limited, Unit- Asmoii, Post Asmoli, Dist. Sambhal, Uttar Pradesh                                                                                                                    | Ethanol/ZLD    | ? 4,86,42,500      |
| s       | inGE Hariawan,ViII.- Hariawan. Hardoi. Uttar Pradesh                                                                                                                                                       | Ethanol/ZLD    | { 17,00,78,500     |
| Total   | Total                                                                                                                                                                                                      | Total          | t 2,84,94,65,894   |

## Detail of Sugar Mills  that were given financial assistance during the year 2019-20

| S.No.   | Name of the Sugar Mill                                                                                                                                                                                                                                         | Type of Loan   | Amount Disbursed   |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------|
| 1.      | M/s Raosaheb dada Pawar GhodgangaSSK Ltd., Raosahebnagar, Nhavare, Tal-Shirur, Dist. Pune, Maharashtra (Formerly known as M/s Ghodganga SSKLtd., Raosahebnagar, Nhavare,Tal-Shirur, Dist. Pune, Maharashtra                                                    | Co- Generation | { 9,59,21,208      |
| 2.      | M/s Sahakar Maharshee Shivajirao Narayanrao Nagawade Sahakari SakharKarkhana Limited (Formerly known as The Shrigonda Sahakari Sakhar Karkhana Ltd.), At Shrigonda Factory, Post Shrigonda Sakhar Karkhana, Taluka Shrigonda, District Ahmednagar, Maharashtra | Co- Generation | { 11,83,62,000     |
| 3.      | M/s Shri Bhima Shankar Sahakari Sakkare Karkhane Niyamit, Marguar-589204, TQ-Indi, Distt-Vijaypur, Karnataka.                                                                                                                                                  | Co- Generation | ? 8,93,51,000      |
| 4.      | M/s The Bhogpur Co-op. Sugar Mills Ltd., Bhogpur- 144201, Distt- Jalandhar. Punjab                                                                                                                                                                             | Modernisation  | ? 5,05,50,000      |
| 5.      | I 144201, Distt- Jalandhar, Punjab                                                                                                                                                                                                                             | Co- Generation | ? 5,14,46,000      |
| 6.      | Daurala, Meerut, Uttar Pradesh.                                                                                                                                                                                                                                | Modernisation  | ( 4,94,50,000      |
| 7.      | M/s Shri Balaji Sugar& Chemicals Private Ltd., Village: Yeregal, Taluka - Muddebihal,Dist: Bijapur, Karnataka                                                                                                                                                  | Co- Generation | { 8,08,11,000      |
| 8.      | M/s Dhampur Sugar Mills Limited, Unit-Asmoli, Post Asmoli, Dist. Sambhal, Uttar Pradesh                                                                                                                                                                        | Ethanol/ZLD    | ? 4,71,44,500      |
| 9.      | M/s L.H. SugarFactoriesLtd., Civil Lines, Pilibhit, Uttar Pradesh                                                                                                                                                                                              | Ethanol/ZLD    | ( 13,27,04,000     |
| 10.     | M/s Athani Sugars Ltd., ShahuwadiUnit (lessee of Udaysingrao Gaikwad SSK Ltd.) Sonawade - Bambawade, Tal. Shahuwadi, Dist. Kolhapur, Maharashtra- 416213                                                                                                       | Ethanol/ZLD    | ? 37,82,08,000     |
| 11.     | M/s Siddhi Sugar and Allied Industries Ltd., Maheshnagar, Ujana, Tq. Mhmedpur,Dist. Latur, Maharashtra                                                                                                                                                         | Ethanol/ZLD    | ( 4, 19,43,500     |
| 12.     | M/s Bhalkeshwar Sugars Ltd., Bajolga, Tal-Bhalki, Dist Bidar, Karnataka                                                                                                                                                                                        | Ethanol/ZLD    | ? 34, 12,98,000    |
| 13.     | M/s Siddhi Sugar and Allied Industries Ltd. Maheshnagar, Ujana,Tq.-Ahmedpur,Dist.-Latur, Maharashtra                                                                                                                                                           | Ethanol/ZLD    | ? 98,36,500        |
| 14.     | M/s Dhampur Sugar Mills Limited, Unit-Dhampur, Moradabad Road, DisH. Bijnor, Uttar Pradesh-246761                                                                                                                                                              | Ethanol/ZLD    | { 15,35,82,800     |
| 15.     | M/s Shri Sai Priya Sugars Limited, Hippargi-Mygur, Vishal Nagar, Hipparagi-Alabal Road, Tq.- Jamkhandi, Dist. Bagalkot-5873 11, Karnataka                                                                                                                      | Ethanol/ZLD    | { 24,52,82,700     |
| Total   | Total                                                                                                                                                                                                                                                          | Total          | ? 1.88.58.91.208   |

## Detail of Sugar Mills  that were given financial  assistance during  the year 2020-21

|   S.No. | Name of the Sugar Mill                                                                                                                    | I Type of Loan   | Amount Disbursed   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|------------------|--------------------|
|       1 | M/s The Bhogpur Co-op. SugarMills. Ltd., Bhogpur- 144201, DisH- Jalandhar, Punjab                                                         | I Modernisation  | ( 3,75,72,000      |
|       2 | M/s Shri Sai Priya Sugars Limited, Hippargi- Mygur, Vishal Nagar, Hipparagi-Alabal Road, Tq.-Jamkhandi, Dist. Bagalkot-587311, Karnataka  | 1 Ethanol/ZLD    | ? 25,00,00,000     |
|       3 | M/S MRN Cane Power (India) Ltd., at :i ?!ITE :£ : 1]Po :]1:1::::= ;# 7 15 5 T q w B ad a 1rIr1L i )                                       | C iow generation | ? 21,49,08,000     |
|       4 | M/S Mylar Sugar Ltd.,(MSL) At Beerabbi E!!!: IIIIin a::aTIT ][][ a d ag a 1 i 1ra1 u k a 9 ]B!!leIla wILI                                 | On gene m tion   | ? 7, 11,17,000     |
|       5 | M/s Bhalkeshwar Sugars Ltd., Basaveshwar :i :tsI :f : d:: : :iIIIIIin: :1:::L :: 1k i M 5853 28)Tq• Bha 1 kip                             | Modernisation    | { 6,24,28,000      |
|       6 | M/s Shri Sai Priya Sugars Limited, Hippargi- Mygur, Vishal Nagar, Hipparagi-Alabal Road, Tq.-Jamkhandi, Dist. Bagalkot-5873 11, Karnataka | Ethanol/ZLD      | { 4,06,08,300      |
|       7 | M/s Bhogpur Co-op Sugar Mills Ltd., Bhogpur, Jalandhar, Punjab                                                                            | Co-generation    | { 4,57, 10,000     |
|       8 | M/s Bhogpur Co-op Sugar Mills Ltd., Bhogpur, Jalandhar, Punjab                                                                            | } Co-generation  | ? 57,36,000        |
|       9 | M/s Dwarkadhish Sakhar Karkhana Ltd., At I;I:::: ht ra B T a 1+ w S atan11&I E!I i st •w b1ashiKE                                         | than o1/Z LD     | ? 9,00,00,000      |
|      10 | M/s SadashivraoMandlik Kagal Taluka SSK }: :: ]EIiIIIIIL aTal :i: i:tTIi= h a J=:1r:IP::iSsIr:u 1 a g e )                                 | E than o1 Z LD   | { 9,00,30,000      |
|      11 | M/s The Bhogpur Co-op. SugarMills Ltd., Bhogpur- 144201, DisH- Jalandhar, Punjab                                                          | I Modernisation  | { 8,81,21,000      |
|      12 | M/s Nandi Sahakari Sakkare Karkhana : i=:1{}{j a1:: ET::ai:: a P 0 S t ][][ 0 S U r )) T eh • Idgb                                        | C OWn e ration   | ? 18,26, 13,000    |
|      13 | s Karkhana ! i: ::? !i\1 ij ::i: t===11:ik a P o s t ][ ][ o s u r ) ) T e h•                                                             | Co = generation  | { 9,58, 19,500     |
|      14 | M/s Harsha Sugar Ltd. at Village-Savadatti, Taluk- Savadatti, Distt- Bejgum,Karnataka                                                     | Co-generation    | { 9, 16,80,500     |

|       | Name of the Sugar Mill                                                                                     | Type of Loan   | Amount Disbursed   |
|-------|------------------------------------------------------------------------------------------------------------|----------------|--------------------|
|       | M/s Harsha Sugar Ltd. at Village-Savadatt' Taluk- Savadatti, Distt- Bejgum,Karnataka                       | Co-generation  | { 1,80,32,700      |
|       | Tal.-Satana, Dist. Sheware, Nashik, Maharashtra.                                                           | Ethanol/ZLD    | { 2,93,61,700      |
|       | M/s Bhalkeshwar Sugars Ltd., Basaveshwar Chowk, near I.B. Bhalki-585328,Tq. Bhalki, Dist. Bidar, Karnataka | Modernisation  | : 1,18,79,000      |
|       | M/s Dwarkadhish Sakhar Karkhana Ltd.. At Tal.-Satana, Nashik, Dist. Sheware Maharashtra.                   | Ethanol/ZLD    | { 1,96,84,300      |
| Total | Total                                                                                                      | Total          | ? 1,44,53,01,000   |

## Detail of Sugar Mills  that were given financial  assistance during  the year 2021-22

| S.No.   | Name of the Sugar Mill                                                                                                           | Type of Loan   | Amount Disbursed   |
|---------|----------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------|
| 1.      | M/s Sadashirao Mandlik Kagal Taluka SSK Ltd., Sadashivnagar, Hamidwada-Kaulage, Tal.-Kagal, Dist.-Kolhapur, Maharashtra - 416235 | Ethanol/ ZLD   | ? 9,00,29,600      |
| 2.      | M/s Bannari Amman Sugars Ltd, Alaganchi village, Nanjangud taluk, District Mysore, Karnataka                                     | Ethanol/ ZLD   | ( 14,99,70,400     |
| 3.      | M/s Bannari Amman Sugars Ltd, Alaganchi village, Nanjangud taluk, District Mysore, Karnataka                                     | Ethanol/ ZLD   | { 31,01,79,600     |
| 4.      | M/s Nandi Sahakari Sakkare Karkhana Niyamit, Krishnanagar, Post Hosur, Teh. &Distt. Nijapur, Karnataka                           | Co-generation  | * ? 13,98,20,400   |
| 5.      | M/s Nandi Sahakari Sakkare Karkhana Niyamit, Krishnanagar, Post Hosur, Teh. & Distt. Niiapur, Karnataka                          | Co-generation  | * { 13,86,12,100   |
| 6.      | M/s ShreeNarmada KhaIId Udyog Sahakari Mandli ltd., Dharikheda, P.O. Timbi, Ta. Rajpipla (Nandod), Dist. - Narmada, Gujarat      | Ethanol/ZLD    | # { 15,90,08,000   |
| 7.      | M/s Karmyogi AnkushraoTope Samarth Sahakari Sakhar Karkhana Ltd. post Ankushnagar, Taluka Ambad, District Jalna, Maharashtra     | Ethanol/ ZLD   | + ? 22,33,79,900   |
| Total   | Total                                                                                                                            | Total          | ? 1,21,10,00,000   |

## Detail of Sugar Mills  that were given financial assistance during the year 2022-23

|       | Name of the Sugar Mill                                                | Type of Loan   | Amount Disbursed   |
|-------|-----------------------------------------------------------------------|----------------|--------------------|
|       | M/s. DCM Shriram Limited, Hariawan, Hardoi, U.P,                      | Co-generation  | # { 36,31,37,000   |
|       | M/s. Khatav Man Taluka Agro Processing Pvt. Ltd., Satara, Maharashtra | Co-generation  | 8 ( 4,25,00,000    |
|       | M/s. Karmyogi Ankushrao Samarth SSKLtd. Jalana, Maharashtra           | Ethanol        | # { 45,96,100      |
| Total | Total                                                                 | Total          | t 41,02,33,100     |

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