5.
"Provided that the Central Government may accord sanction for a loan under this rule to a sugar undertaking only on one occasion during the period in which the previous loan under this rule or a loan under sub-rule (2) of rule 21, along with interest thereon has not been fully repaid'.
In the said rules, after Chapter IX, the following Chapter X shall be inserted, namely:- ' l!..t!l>illlll$ ~~w !Jll~~"'lli~a .. n»w 11Hi!l~2e !!lick llll.D!!OIV Mlll!il<l::mllill'l!!
21. (1) 'A potentially viable sick sugar .undertaking shall be eligible for a loan for the modernization or rehabilitation of plant and machinery:
Pmvided that the loan· from the Fund has been recommended in the rehabilitation scheme for the potentially viable sick sugar undertaking by the Board for Industrial and Finandal Reconstruction or the Committee for rehabilitation, as the case may be:
Provided furcher that the scheme or project for such modernization or rehabilitation of its plant and machinery is approved for financial assistance by a financial institution or a scheduled bank under its relevant . scheme or sponsored by the Technology, Information, Forecasting and Assessment Council in respect of Scheme Mission ii'Jode Project on Sugar Production Technologies of the Department of Science and Technology for modernization and rehabilitation of its plant and machinery:
Provided also that a sugar undertaking shall not be eligible for a loan under this rule if more than one loan under rule 16 remains to be fully repaid
(2) A potentially viable sick sugar undertaking shall be eligible for a loan for the sugarcane development:
Pro,;it.i2d that for a scheme or project for sugarcane development in the reh.:,r.'l:i;;,:.icn scheme for the potentially viable sick sugar undertaking sanctioned iJ" the Board for Industrial and ~inancial Reconstruction or .!> . 5> 21
(3) TI-lE GAZElTEOF!NDIA: EXTRAORDINARY [PARl II-SF .ill recommended by the Committee for rehabilitation, a loan from the Fund has been recommended:
Provided further that a sugar undertaking shall not be eligible for a loan under this rule if more than one loan under rule 17 remains to be fully repaid.
A sugar undertaking, which has availed a loan under sub-rule (1) or sub rule (2), shall not be eligible to apply for a loan under this rule on any subsequent occasion.
(4) Any eligible sugar undertaking under sub-rule (1) shall make an application for the loan for modernization or rehabilitation to the Committee for rehabilitation in Form II-A along with eleven certified copies thereof.
(5) Any eligible sugar undertaking under sub-rule (2) shall make an application for the loan for sugarcane development in form liU-Ii'l along with twelve certified copies thereof to the State Government in which the sugar undertaking is located and the State Government may forward the application after such scrutiny, as it deems necessary, with its comments and recommendations to the Member-Secretary of the Committee for rehabilitation.
(6) The Member-Secretary of the Committee for rehabilitation shall, as soon as may be, after receipt of an application referred to in sub-rule ( 4) or sub-rule (5), place the application before the said Committee along with his comments, if any, for the Committee's consideration.
(7) The Committee for rehabilitation, before making a final decision on an application, shall satisfy itself that adequate reliefs, or concessions from the Central Government, State Government, any scheduled bank or other bank, financial institutions or donations fTom the employees o( the undertaking and other agencies, If any, have been provided in the rehabilitation scheme and such reliefs or mncessions or donations have been accepted by the concerned agencies to be provided to the sugar undertaking.
(8) It shall be open to the committee for rehabilitation before making a final decision on an application, to call for any further Information from the applicant or any other concerned agency, if necessary.
(9) The final decision of the Committee for rehabilitation on any application under this rule shall be submitted to the Central Government in the form of recommendation.
(10) The Central Government may, after consideration of the recommendation of the Committee for rehabilitation and any other relevant fact In respect of a project for modernization or rehabilitation, authrorise payment to a sugar undertaking of such amount of loan, not exceeding the amount required by the financial institution or the scheduled bank to be · contributed by such sugar undertaking as promoter's contribution:
Provided that the loan from the Fund under this rule shall not exceed sixty per cent of the eligible project cost:
Provided further that the loan from the ·Fund shall be granted only if the sugar undertaking contributes a. minimum of twenty percent of the projett cost from its own resources as promoter's contribution:
Provided also that a loan from the Fund shall not be granted for the purpose of repayment of any loan in any form availed by the sugar undertaking or interest on any such loan in any form, whether avail'!d 23 24 THE GAZCTTE OF INDIA: EXTRAORDINARY IPART II ~ J(i)l from the fund or from financial institutions, banks or any oltJer agency including Government:
Provided also that the loan from the Fund shall be granted only if the sugar undertaking has repaid .all the sums, which have become due in respect of the Fund and the Levy Sugar Price Equalisation Fund.
(11) (i) The loan for modernization or rehabilitation shall be disbursed by the Central Government to the concerned sugar undertaking or paid by it to the financial institutions for disbursement to the concerned sugar undertaking, either in lump sum or in two or more instalments as may be considered necessary by the Central Government, after an agreement is executed between tne Central Government, the concerned State Government, the participating financial institutions or scheduled banks and the sugar undertaking concerned.
· '(ii) The agreement referred to in clause (i) of this sub-rule shall contain the terms and conditions with regard to the period of repayment including the number and amount of instalments, payment of interest, the manner of such repayment or payment and any other matter incidental to the loan.
(iii) The loan from the Fund shall carry a concessional rate of simple interest of six per cent per annum and in case of any default in repayment of the amount of loan, or payment of any instalment thereof or interest thereon, an add'itional interest at the rate of two and half per cent per annum of the amount of default shall be payable by the sugar undertaking.
(iv) The repayment of the loan for modernization or rehabilitation togetherwith interest thereon, shall commence after the expiry of such period as may' be decided by the Central Government after due verification by financial institution subject to a maximum of tive ye;:;;,, reckoned from the date of disbursement of the loan from the Fund and the loan from the Fund along with the interest due thereon, shall be recoverable in half-yearly instalments not exceeding ten in number.
(v) The financial institution shall, within thirty days of receipt of any amount from the loanee sugar undertaking by way of rEpayment of loan from the Fund, payment of interest thereon, or any other receipts, credit the said amount to the Fund.
(12) The Central Government may, after consider•:'i~m of the recommendaeion of the Committee for rehabilitation and any '-·'' >r rel•2vant fact in respect of a project for sugarcane development authorize p:wment to a sugar undertaking of st.•ch amount of loan not exceeding ninety per cent of the eligible project cost and not exceeding the amount, if any, specifted under rule 17;
2609 G 1102-4
Provided that the loan from the Fund shall be granted only if the sugar undeli:aking or the concerned State Government contributes a minimum often per cent of the project ccst from its own resources:
Provided further that the loan from the Fund !;hali not be granted for the purpose of repayment of any loan in any form availed by the sugar undertaking or interest on any such loan in any form, whether availed from the Fund or from financial institutions, banks or any oti:er agency including Government:
Provided also that the loan from the Fund sha/! be gra;1tcd Onl'f ;f the sugar undertaking has repaid all the sums, which have become due in respect of the Fund and the Levy Sugar Price Equalisation Fund.
25 THE GAZETTE OF INDIA: EXTRAORDINARY IP MT ll SEc 3(_-'-
(q) (i) The loan for sugarcane development shall be disbursed to the concerned sugar undertaking after a tripartite agreement is executed between the Central Government, the concerned State Government and the sugar undertaking.
(ii) The tripartite agreement referred to indause (i) of this sub-rule ~~ shall contain the terms and conditions as the Central Government may decide in consultation with the State government such as monitoring of the progress of the ·project by a research institute or any other organization as may be decided by the Central Government, repayment of the loan with interest, remittance to the-credit of the Fund, utilization ' certificate by the concerned State Government and any other matter incidental to the loan.
(iii) the loan from the Fund shall carry a concessional rate of simple interest of six per cent per annum and in case of any default in repayment of the amount of loan, or payment of any instalment thereof or interest thereon, an ?~":H,-.nal interest at the rate of two ar.d <1 half pe~ cent per annum on the ~iiJO'J~.~, of dci~~:~ Shall be pav?.::!le by the sugar undertaking.
(iv) The repayment of loan for sugarcane development together with interest thereon shall commence on the expiry of moratorium period of one year reckoned from the date of disbursement of the loan and shall be repaid in equal half-yearly instalments not exceeding eight in number and interest thereon shal be paid half-yearly after the expiry of one year from the date of disbursement of the loan".