Hurdle in soft loan: Sugar mill yet to clear cane arrears

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Uttarakhand: Stuck up with soft loan scheme, the Iqbalpur sugar mill is unable to pay arrears of Rs 72 crore to the cane producing farmers whose worries continue to increase. According to officials, its proposal is pending with the bank, and the disbursement of cash will begin only after it sanctions loan to the mill.

Three months ago Uttarakhand Chief Minister Trivendra Singh Rawat declared to grant soft loans to the mills so that they can pay arrears of farmers. Immediately after the announcement, three mills including Iqbalpur mill applied for the loan. The proposal of two other mills was sanctioned, but the proposal of Iqbalpur mill is still pending. The mill had applied to a Co-operative Bank and Punjab National Bank to get the loan of Rs 36 crore from each.

According to a media report, the co-operative bank has stated that they will grant loan only after PNB sanctions it. The PNB officials have stated that the file has been sent to the Headquarter for approval. Bank considers the financial position, before releasing the loan, maybe this has caused the hindrance in a loan approval.

Sugarcane farmers are awaiting for a mill to receive the loan so that their outstanding dues will be cleared.

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