Lok Sabha Question No. 2369 (UNSTARRED), answered on 2024-12-10
Subject: Loan by NCDC for Strengthening Cooperative Sugar Mills
Ministry: COOPERATION
Asked by: Shri G Lakshminarayana, Shri Appalanaidu Kalisetti

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 2369 TO BE ANSWERED ON  10 th  DECEMBER, 2024

## LOAN BY NCDC FOR STRENGTHENING COOPERATIVE SUGAR MILLS:

## 2369   SHRI G LAKSHMINARAYANA: SHRI APPALANAIDU KALISETTI:

Will the Minister of Cooperation ( सहकारिता मंत्री ) be pleased to state:

- (a)  the number and total value of loans provided by NCDC under the "Grant-in-aid to NCDC for Strengthening Cooperative Sugar Mills (CSMs)" scheme over the last three years, State-wise, with particular focus on Andhra Pradesh, district-wise and mill-wise details;
- (b) the details of cooperative sugar mills or co-generation plants established or upgraded using these loans, State-wise with specific details of those in Andhra Pradesh, including their current operational status;
- (c)  the number and total value of pending loan applications under this scheme, State, with districtwise  details  for  Andhra  Pradesh  along  with  the  reasons  for  delays  in  processing  these applications;
- (d) the  target  for  loan  disbursement  and  new  project  approvals  under  the  scheme  for  current financial year, State-wise; and
- (e)  whether any specific measures are being undertaken to address operational challenges faced by cooperative sugar mills in Andhra Pradesh and other States and if so, the details thereof?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a): NCDC has so far sanctioned loan of ₹.8040.38 crore to Cooperative Sugar Mills under the 'Grant-in-aid to NCDC for Strengthening Cooperative Sugar Mills (CSMs)' scheme during the last three years. No proposal for sanction of loan has been received from any Cooperative Sugar Mill located in Andhra Pradesh. State wise details of loan sanctioned by NCDC during last three years are Annexed.

(b): While no proposal for loan to set up cogeneration plant has been received from Cooperative Sugar Mills in Andhra Pradesh, NCDC has sanctioned loan of ₹97.12 crore to Shree Narmada Khand Udyog Mandli Ltd., Narmada, Gujarat for setting up 30 MW Cogeneration plant.

(c): No loan application from Cooperative Sugar Mill in Andhra Pradesh is pending with NCDC. (d): The Government has approved grant-in-aid of ₹1000 crore to NCDC for providing loan up to ₹10,000 crore to Cooperative Sugar Mills (CSMs) for meeting their financial requirements to set up ethanol production plants, cogeneration plants and working capital upto 31 st March, 2025. As such, NCDC has not fixed any target state wise for loan disbursement during the current financial year under the scheme.

(e): To mitigate operational challenges faced by all Cooperative Sugar Mills (CSMs) including those from Andhra Pradesh. NCDC has revised funding pattern for ethanol plant loan/cogeneration plant loan to 90:10, wherein the 90% of the project cost can be provided by NCDC as loan and the remaining 10% be raised by the society, subject to techno-economic merit of the project, their eligibility to avail loan from NCDC either directly or through State Government and fulfilment of the NCDC direct funding guidelines.

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## Annex

(Rs. in crore)

| State          | 2022-23*    | 2022-23*           | 2022-23*         | 2023-24     | 2023-24            | 2023-24         | 2024-25     | 2024-25            | 2024-25         |
|----------------|-------------|--------------------|------------------|-------------|--------------------|-----------------|-------------|--------------------|-----------------|
| State          | No. of CSMs | Amount Sanctione d | Amount Release d | No. of CSMs | Amount Sanction ed | Amount Released | No. of CSMs | Amount Sanction ed | Amount Released |
| Maharashtra    | -           | -                  |                  | 19          | 3349.02            | 1909.60         | 31          | 3946.72            | 2324.65         |
| Gujarat        | -           | -                  |                  | 4           | 360.16             | 112.30          | 2           | 244.90             | 110.91          |
| Madhya Pradesh | -           | -                  |                  | 2           | 139.57             | 8.00            | -           | -                  | -               |
| Andhra Pradesh | -           | -                  |                  | -           | -                  | -               | -           | -                  | -               |
| Total          |             |                    |                  | 25          | 3848.75            | 2029.90         | 33          | 4191.62            | 2435.56         |

* During the FY 2022-23, no project was sanctioned/released.