Maharashtra Govt. offers guarantee to loans raised by sugar mills

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Pune: Maharashtra government has on Monday issued guarantee to the loans raised by two cooperative sugar mills, both belong to the politicians. The other mills are likely to get similar benefits indicating that the politics in the state revolve around the sugar mills.

Government has issued guarantee for Rs 60 crore loan raised by Vitthal Cooperative Sugar Mill from Solapur which it had borrowed from the Maharashtra State Cooperative Bank (MSCB) in December 2019. Another sugar mill which has received guarantee of Rs 12 crore is Rajgad Sugar Cooperative mill from Bhor (Pune). The government’s notification has provided guarantee for the interest of Rs 8.40 crore and Rs 1.68 crore charged by MSCB to both sugar mills respectively.

State government had to intervene as both the mills were not eligible for the loans from National Bank for Agriculture and Rural Development (NABARD) due to the negative net disposable resources (NDR). There are a total 50 such sugar mills that are not eligible as per NABARD norms but will get loan guarantee from state government soon.

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