Mumbai News: State To Stand Behind New Loans To Sugar Mills

Mumbai: The Cabinet on Wednesday announced its decision to stand behind state cooperative banks’ loans to ailing sugar mills. It also approved a measure to offer loans to sugar mills at a lower rate than what the National Cooperative Development Corporation (NCDC) charges.

Generally NCDC charges 9.74% on loans to sugar mills. Instead now the mills will get loans at 8% interest rate, a senior CMO official said after the Cabinet meeting. 

Many Mills failed to give FRP to farmers

Several leaders from the Congress and the Nationalist Congress Party (NCP), who are now part of the BJP government in the state, were keen to receive support from the state government to shield their mills from financial turmoil.

Some of these mills had failed to pay the Fair and Remunerative Price (FRP) to farmers for the sugarcane crushed during the last season. NCP leader and Deputy Chief Minister Ajit Pawar was actively interested in aiding these sugar mills and had recently held a meeting with Union Co-operative Minister Amit Shah to discuss the matter.

Other major decisions

Among other major decisions, the Cabinet gave nod for transferring Mogarpada land in Thane to MMRDA for Metro car shed. The decision will expedite work on metro projects 4, 4 A, 10 and 11, the official said.

The Cabinet approved the Tourism Department’s proposal to hold an international festival in Mumbai in January 2024.

The Cabinet also decided to initiate a new cyber security project at a cost of Rs837 crore.