NABARD-led panel drafts package

Asked to work out a financial package for the revitalisation of the sugar industry by the Finance Ministry, a committee chaired by NABARD chairperson Ranjana Kumar and comprising representatives of the Centre, the Reserve Bank of India, state governments, IBA, banks and financial institutions has decided to classify sugar mills operational in 2002-03 on the basis of their commercial viability.

Category I will include mills that have enough surplus to repay their dues within the stipulated time; they will be provided need-based reschedulement of loans for periods not exceeding five years.

In the second category come mills that do not have adequate operational surplus to repay debts within the existing repayment period but can do so if given an extension upto 15 years with a two-year moratorium on payment of interest and repayment if principal.