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New loan waiver policy for sick mills

THE STATE Cabinet today decided to formulate a new comprehensive policy for waiver of loan given to the sick sugar mills even as it decided to constitute an empowered committee to consider proposals for public-private sector partnership to develop infrastructure. It also decided to buy a new jet plane.

india Updated: Oct 28, 2006 10:45 IST

THE STATE Cabinet today decided to formulate a new comprehensive policy for waiver of loan given to the sick sugar mills even as it decided to constitute an empowered committee to consider proposals for public-private sector partnership to develop infrastructure. It also decided to buy a new jet plane.

Chief Minister Mulayam Singh Yadav presided over the Cabinet meeting that decided to formulate a comprehensive policy for waiver of loan given from the Uttar Pradesh Shakkar Nidhi to the private and other sugar mills and the sugar mills referred to the Board of Industrial and Finance Reconstruction (BIFR). The State Government would reintroduce the One Time Settlement (OTS) for the waiver of loans. The State Government had earlier introduced the OTS in 2004.

Only one mill, however, had been able to derive advantage from the scheme.

The new scheme would remain effective for one year. About 12 sugar mills including eight mills in private sector have been referred to the BIFR. The State Government proposes to bring the sugar mills out of the BIFR, said a senior officer of the state government.

As per another decision the Industrial Development Commissioner would chair the empowered committee that would have Principal Secretary Finance as member.

The MD PICUP would be convenor of the committee. The State Cabinet also amended rules regarding contribution of pension and leave encashment by the state government employees who go on deputation to various Public Sector Undertakings (PSUs), universities, autonomous institutions, local bodies and cooperative institutions. The employees would now be exempted from making the 10 per cent contribution. The State Cabinet decided to amend the provisions for trade tax exemption in Special Economic Zones to make it in conformity with the SEZ Act. As per the amendment the trade tax would now be charged all the items imported into the SEZs while no trade tax would be charged on the exports from SEZs. The Cabinet decided to constitute a committee to be headed by the principal secretary civil aviation to buy an aeroplane for Rs 34 cr. The State Cabinet also decided to waive one per cent trade tax to be recovered from hosiery traders.

Besides a decision was taken to increase the quota of molasses from 25 lakh quintal per annum to 35 lakh quintal per annum. As per the decision term of agreement for supply of molasses has also been raised to three years. Uttar Pradesh and Uttaranchal would soon sign a new Memorandum of Understanding (MoU) for supply of molasses for next three years, as the agreement between the two states for supply of molasses was to expire on October 31, 2006.

Uttaranchal Chief Minister Narain Dutt Tiwari had sent a letter in this regard to Chief Minister Mulayam Singh Yadav recently.