Maharashtra streamlines NCDC loan approvals for cooperative sugar mills
Maharashtra has streamlined NCDC loan approvals for cooperative sugar mills by replacing multiple scrutiny bodies with a single committee headed by the Sugar Commissioner. The committee will assess financial and technical viability before recommending mills for working-capital assistance.
The Maharashtra government has simplified the process for approving margin money loans for working capital from the National Cooperative Development Corporation (NCDC) for cooperative sugar mills, replacing the earlier multi-tier scrutiny mechanism with a single committee headed by the state’s Sugar Commissioner.
As part of the revised framework, the state government has approved the constitution of a Financial and Technical Committee under the chairmanship of the Sugar Commissioner, Maharashtra.
The decision was taken through a Government Resolution issued by the state’s Department of Cooperation, Marketing and Textiles on September 7.
The committee will examine the technical and financial viability of cooperative sugar factories seeking to be recommended for NCDC assistance. It will also lay down criteria for recommending future proposals and assess whether the factories can become financially viable and operate efficiently.
The government has superseded its September 5, 2019 resolution, under which separate financial and technical scrutiny committees, along with a ministerial mechanism, were established to examine such proposals.
Under the revised arrangement, the earlier Financial Scrutiny Committee and Technical Scrutiny Committee have been merged into a single Financial and Technical Committee headed by the Sugar Commissioner, Maharashtra State, Pune.
The restructuring is aimed at streamlining the appraisal of proposals before cooperative sugar factories are recommended for financial assistance from the NCDC.
The committee will include representatives of the Maharashtra State Cooperative Bank, Vasantdada Sugar Institute and Maharashtra State Cooperative Sugar Factories Federation Ltd.
Other members will include the Director of Sugar (Finance), Director of Sugar (Administration), Joint Registrar (Auditor), Joint Director (By-products) and Executive Engineer from the Sugar Commissionerate.
The Sugar Commissioner has also been authorised to invite additional members to the committee, wherever required.
Under the earlier framework, proposals recommended through the scrutiny process were submitted to the state government for consideration by a Cabinet Sub-Committee constituted under the chairmanship of the Cooperation Minister.
The latest resolution comes as Maharashtra continues to use the NCDC route to provide working-capital support to cooperative sugar factories. Margin money assistance is routed through the state government, with proposals requiring scrutiny of the financial and operational viability of the concerned mills.
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Source : ChiniMandi
