(a) whether the State Government of Uttar Pradesh has sought the assistance of the Union Government for providing easy bank loan to sugar mills to ensure timely payment to sugarcane farmers and for also providing drinking water in Bundelkhand and Vindhyachal areas; and
(b) if so, the details thereof along with the reaction of the Government in this regard?
ANSWER
THE MINISTER OF STATE FOR FINANCE
(SHRI ANURAG SINGH THAKUR)
(a): Government of Uttar Pradesh, vide their letter dated 24.06.2019 addressed to Secretary Food Government of India, has suggested various short term and long term measures for the sugar sector. Therein, it has been, inter-alia, suggested by the State Government that the Central Government should re-determine the norms of lending/fixing Cash Credit Limit (CCL) by the banks for sugar sector, so that adequate credit is available with sugar mills to enable them to make timely payment of cane price dues of farmers. Further, Hon’ble CM of Uttar Pradesh had requested Department of Drinking Water and Sanitation to provide Special/ additional fund for Piped Water Supply to Bundelkhand, Vindhya Region, Purvanchal Region and quality affected areas.
(b): In this regard it is stated that with a view to facilitate payment of cane dues of the farmers for the current sugar season 2018-19, the Central Government has notified the Scheme for extending soft loan to sugar mills vide notification dated 02.03.2019. Sugar mills of all the States including Uttar Pradesh are eligible under the scheme and availing the loans there under. Additionally, the Department of Drinking Water and Sanitation has informed Hon’ble CM of Uttar Pradesh at the level of Hon’ble Minister Department of Drinking Water and Sanitation, Ministry of Jal Shakti that there is no scope to set aside any special allocation to the State.
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