image

Sugar

Under the Sugar Scheme, NCDC has been promoting establishment and development of sugar factories in the co-operative sector so as to help them in achieving the primary objective of ensuring remunerative prices to the farmers for sugarcane.

Activities Assisted:

Assistance is provided for the following activities under various schemes of Sugar:

  • Investment loan assistance to the State Governments to supplement their resources for equity participation in new co-operative sugar mills.
  • Term loan assistance for setting up of new mill and to the existing co-operative sugar mills for modernization/ expansion of capacity.
  • Term loan assistance for establishment of sugar by-product units.
  • Margin Money assistance to the existing co-operative sugar mills.
  • Short/medium term loan towards working capital requirements of coop. Sugar mills.

Eligible Cooperative Societies:

Under the Sugar scheme, financial assistance is provided to National/State/District/Regional/Primary level Cooperative Sugar Federations/Societies. Eligibility criteria for availing of assistance by sugar cooperatives are as under:

A.Eligibility Criteria for Assisting New Mills

  • Term loans tied up
  • Placed orders for plant and machinery
  • Adequate sugarcane potential
  • Techno-economic feasibility

B.Eligibility Criteria for assisting Modernisation-cum-expansion Projects

  • Adequate cane potential
  • Techno-economic feasibility
  • Capable of raising own share of project cost

C.Eligibility Criteria for Assisting Sugar By Product Units

  • Techno-economic feasibility
  • Capable of raising own share of project cost

D.Term loan assistance towards margin money requirements and Working capital Scheme.

  • Quantum of short/medium term loan to cooperative sugar factories assistance will be on case to case basis.

Dovetailing Govt. of India scheme:

  • SDF assistance for all Cooperative Sugar Mills is routed through NCDC.
  • Capital subsidy from Ministry of New and Renewable Energy (MNRE) for co-generation projects funded by NCDC is routed through NCDC.

The Sugar Development Fund (SDF) of the Ministry of Food, Public Distribution and Consumer Affairs, Govt. of India, (http://dfpd.nic.in) provides soft loan to meet shortfall in promoters' contribution towards equity participation up to a maximum of 40% of the project cost, depending on financial resources of the coop. Sugar factories. The balance not less than 10% of the project cost is to be met by the society either by way of raising as additional shares capital or from its internal accruals.

Bridge loan assistance against SDF sanction:

Bridge loan assistance up to 85% of SDF sanctioned assistance may be provided for the intervening period between SDF sanction and disbursement. The rate of interest on bridge loan is 1% more than the rate applicable to NCDC term loan assistance at the time of release.

Mode of Funding:

Financial assistance is provided through the State Government or directly to the eligible cooperatives on certain prescribed terms and conditions. NCDC provides financial assistance in the form of loan (both Term Loan and Investment Loan). Under the Working Capital Scheme, the assistance can also be extended through the State Apex Coop. Banks providing working capital assistance to the sugar mill(s) directly/through DCCB.

Quantum of Assistance and Pattern of Assistance:

Quantum of assistance may be up to 90%-95% through State Government & 65-75% of project cost directly to the society. In case of business promotion viz. margin money/ working capital / strengthening of share capital quantum of assistance can be upto 100% of the requirement.

For detailed pattern of assistance please Click at the link provided.

Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme:

To encourage newly formed cooperatives take advantage of innovative ventures, especially by societies with new/innovative idea, NCDC has introduced a new scheme titled, “Yuva Sahakar - Cooperative Enterprise Support and Innovation Scheme” linked to a Cooperative Startup and Innovation Fund created by NCDC. Please Click for details of the Scheme.

Norms for direct funding:

Cooperatives operating for minimum three years & broadly fulfilling following criteria are eligible:

  • Net worth should be positive.
  • There should be no erosion in share capital.
  • Should be in a position to provide 1.25 to 1.5 times security.
  • Financial /operational performance of the cooperative should be at satisfactory level of NCDC.

For detailed norms of Direct Funding please Click at the link provided.

Impact of NCDC’s assistance in the sector:

  • The role played by NCDC in promoting and financing cooperative sugar mills has given a real boost to sugar industry. Consequently, the share of cooperatives in the national production of sugar has risen from 15.54 lakh ton since 1973-74 to 98.56 lakh metric tons (upto crushing season 2020-21).
  • Increase in number of installed sugar mills from 102 in 1973-74 to 283 as on 31.03.2021.
  • Improvement in the socio-economic standards of farmers.
  • Cooperative sugar mills are acting as NUCLEI for area development.
  • Value addition and remunerative price to sugarcane growers.

Common Loan Application Form for availing assistance under the scheme of NCDC can be downloaded from NCDC’s website.

For further details, please contact or write to:

Sugar Division
National Cooperative Development Corporation
4, Siri Institutional Area, Hauz Khas
New Delhi – 110 016
PABX No.: +91-011-26569246
Fax: +91-011-26962370, 26516032
Website: www.ncdc.in Email: mail@ncdc.in

Regional Directorates of NCDC: Bengaluru, Bhopal, Bhubaneswar, Chandigarh, Chennai, Dehradun, Gandhinagar, Guwahati, Hyderabad, Jaipur, Kolkata, Lucknow, Patna, Pune, Raipur, Ranchi, Shimla, Thiruvananthapuram