No delay in ethanol payments to sugar mills, Govt tells Rajya Sabha
The government said ethanol payments to all suppliers, including cooperative sugar mills, are being made within the stipulated 21-day period with no reported delays. To support cooperatives, the National Cooperative Development Corporation has also reduced interest rates on working capital loans, improving access to finance for mills.
Home and Cooperation Minister Amit Shah, in a written reply in Rajya Sabha, informed that as per ethanol procurement terms and conditions, payment is being released to all ethanol suppliers, including cooperative sugar mills supplying to Public Sector Oil Marketing Companies, within the stipulated time frame of 21 days. No instance of delayed payment/differential treatment vis-à-vis a private sugar mill has been reported.
The Minister said that the Cooperative Sugar Mills operating distillery units can meet their working capital requirements through bank borrowings and institutional finance, besides utilising their internal resources.
Additionally, National Cooperative Development Corporation (NCDC), a statutory corporation under the administrative control of the Ministry of Cooperation, has reduced its floating rate of interest for working capital loans to ensure easy working capital availability for the cooperative sugar mills.
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Source : Chinimandi
