Chief Minister Edappadi K. Palaniswami has written to Union Finance Minister Nirmala Sitharaman seeking a slew of measures, including restructuring of loans to revive the sugar industry in the State and protect the livelihood of nearly four lakh farmers.
In a letter on October 24, the Chief Minister sought restructuring of loans availed from banks/ financial institutions by sugar industry as well as loans obtained from The Sugar Development Funds by private and co-operative mills.
“The banks and financial institutions may be instructed to finalise the debt restructuring package soon. Until steps are finalised to revive the sugar sector, banks/financial institutions may kindly be advised not to take any harsh measures under the Insolvency and Bankruptcy Code or SARFAESI Act or refer cases to the Debt Recovery Tribunals,” Mr. Palaniswami said in the letter.
He pointed out that because of the measures taken by the State government and the normal rainfall forecast for 2019, planting of sugarcane during 2019-20 season was expected to increase.
This would help the mills in Tamil Nadu to improve the capacity utilisation, which was expected to be no less than 45-50% on average during 2020-21 season, Mr. Palaniswami added.
