Date:03/03/2006 URL: http://www.thehindubusinessline.com/2006/03/03/stories/2006030300261900.htm

Back Rs 200 crore sanctioned to 11 sugar units in AP

Our Bureau

Hyderabad , March 1.

The Centre has sanctioned Rs 200 crore to help 11 co-operative sugar factories in Andhra Pradesh. The assistance has been timed with the current crushing season.

The National Cooperative Development Corporation (NCDC), Delhi, would provide the funds to the AP State Cooperative Bank (APCOB), Hyderabad, for disbursement.

According to an NCDC press release here, the move comes in response to the State Government's commitment and recommendations for assistance of Rs 309.50 crore working capital for the current crushing season to the 11 sugar units.

Last year, the NCDC had part financed up to Rs 96 crore for seven sugar mills.

The APCOB would provide the funds to the sugar mills at a soft interest rate of 9.5 per cent, asides meeting the balance working capital requirements from their own resources.

This collaborative arrangement of NCDC with APCOB in refinance working capital would reduce the interest burden to the mills by three percentage points. This has been a major focus of the State Government in reviving and restructuring these sugar mills.

The 11 Mills are Sri Venkateswara & Chittoor, both in Chittoor district; Kovvur (Nellore), Sri Vijayarama Gajapathi (Vizianagaram), NVR, Tenali (Guntur), Nizamabad, Kadapa in respective districts.

Thandava, Anakapalli, Etikoppaka and Chodavaram in Visakhapatnam district respectively.