MLA Pramod Madhwaraj said on Wednesday that the State government had issued an order granting a soft loan of Rs. 12 crore to the ailing Brahmavar Cooperative Sugar Factory at Brahmavar in Udupi district.
Mr. Madhwaraj said the State government had issued the order on November 19. Accordingly, a soft loan would be made available to the factory soon. As per the government order, the factory should give priority to paying the dues of sugarcane farmers and the pending salaries of workers of the factory by December end, this year.
The factory should also hold talks with cooperative societies from which it had taken loans. It should take steps to get concession on the interest on these loans from the cooperative societies. Before paying the loans to cooperative societies, the Board of Directors of the factory should take permission of the State government.
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The factory should provide 25 acres of land of the factory along the National Highway 66 as collateral security against the soft loan of Rs. 12 crore. The factory would have to return the soft loan at an annual interest of 10 per cent.
The factory had 110 acres. Since it was a cooperative sugar factory, the government held 51 per cent of shares of the factory. Hence, there would be no problem with regard to the collateral security.