Maharashtra government to repay the loans as sugar mills default

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Mumbai: Maharashtra government will pay a loan of nearly Rs 3,000 crore borrowed by the cooperative sugar mills from the Maharashtra State Cooperative Bank (MSCB), Mumbai Bank and Nanded and Osmanabad district central cooperative banks.

According to the news report published in The Times of India, the government has set up a high-level committee led by the principal secretary (financial reforms) Rajgopal Deora to draft an action plan for the payment. Total 57 cooperative sugar mills had taken loans and the state government had stood guarantor as the projects were not viable. These mills have failed to repay the loans and now the state will have to clear it.

The government has asked the committee to submit a report regarding the repayment of the loan within three months.

“The government will have to pay loans with interest to these banks- Rs 2,500 crore to the MSCB, Rs 350 crore to the Mumbai Bank and Rs 150 crore for Nanded and Osmanabad district central cooperative banks,” said a senior official.

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