REGISTERED NO. DL-33004/2002

The Gazette of India

EXTRAORDINARY

PART II —Section 2

PUBLISHED BY AUTHORITY

No. 8]

NEW DELHI, THURSDAY, MARCH 21, 2002/ PHALGUNA 30,1923

Separate paging is given to this Part in order that it may be filed as a separate compilation.

LOK SABHA

The following Bill was introduced in Lok Sabha on 21.03.2002 ,

BILL No. 24 OF 2002

A Bill further to amend the Sugar Development Fund Act, 1982.

BE it enacted by Parliament in the Fifty-third Year of the Republic of India as

follows:—

1. (7) This Act may be called the Sugar Development Fund (Amendment) Act, 2002.

(2) It shall come into force on such date as the Central Government may, by notifica-

tion in the Official Gazette, appoint.

2. In section 4 of the Sugar Development Fund Act, 1982, in sub-section (1),—

(i) after clause (a), the following clauses shall be inserted, namely:—

"(aa) for making loans to any sugar factory or any unit thereof for

bagasse-based co-generation power projects with a view to improving their

viability;

(aaa) for making loans to any sugar factory or any unit thereof for

production of anhydrous alcohol or ethanol from alcohol with a view to

improving their viability;";

Short title and

commence-

ment.

Amendment

of Act 4 of

1982.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND REASONS

The Sugar Development Fund Act, 1982 (SDF Act) was enacted to provide

for the financing of activities for development of sugar industry. The said Act

provides that the Sugar Development Fund (SDF) shall be applied by the Central

Government, inter alia, for making loans for facilitating the rehabilitation and

modernization of any unit thereof and for defraying expenditure for the purpose of

building up and maintenance of buffer stock of sugar with a view to stabilizing the

price of sugar.

2. The present Bill seeks to amend the SDF Act to provide that the Sugar

Development Fund may also be applied by the Central Government to (a) grant

loans to any sugar factory or any unit thereof for (i) bagasse-based co-geperation

power projects, and (ii) production of anhydrous alcohol or ethanol from alcohol

with a view to improving their viability, and (b) for defraying from the SDF, the

expenditure on internal transport and freight charges to the sugar factories on export

shipments of sugar with a view to promoting export.

3. It is estimated that about 3500 MW of power can be generated by the sugar

factories with bagasse as the feedstock. Bagasse is a byproduct of a sugar factory

and bagassc-based co-generation of power is environment friendly. However, against

a potential of about 3500 MW of bagasse-based power, only about 212 MW

generation capacity has so far been commissioned. Projects for generating additional

245 MW of bagasse-based power are under implementation. Sugar factories face

resources constraints for investment in bagasse-based co-generation. Therefore, it

is considered necessary to encourage and enable the sugar factories to take up

bagasse-based co-generation of power projects. The sale of surplus power generated

from bagasse-based co-generation will improve the viability of the sugar factories

through value addition and optimum byproduct utilization. The cost of generation

of bagasse-based power is also relatively less than that of the conventional power

projects.

4. Molasses is another major byproduct of a sugar facotry. Molasses is used

for production of alcohol. Anhydrous alcohol/ethanol is a good oxygenate and

when used as a blend with motor fuel, it substantially reduces vehicular emissions.

Ethanol blended motor fuel is environment friendly. Encouragement of production

of anhydrous alcohol/ethanol for blending with motor fuel has the potential of

resulting in substantial savings in foreign exchange on the import of crude oil.

Sale of anhydrous alcohol/ethanol would improve the viability of the sugar factories

through value addition and optimum byproduct utilization. Therefore, encouraging

production of anhydrous alcohol/ethanol by sugar factories or units thereof is

desirable.

5. The carry over stock of sugar as on 30.09.2001 was over 100 lakh tonnes.

The holding costs of sugar at such high level adversely affect the viability of sugar

factories. This in turn affects timely payment of cane price dues to the sugarcane

growers. Some developed countries continue to give subsidy on export of sugar

due to which the international prices of sugar remain low. An encouragement for

export of sugar would help in reducing the stocks of sugar and improving

realizations from sale of sugar, which can be utilized for making timely payment of

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

cane prices. Therefore, defraying expenditure to the sugar factories on internal

transport and freight charges on export of sugar is expected to promote export of

sugar.

6. The Bill seeks to achieve the above objects.

NEWDELHI;

SHANTA KUMAR.

The 12th March, 2002.

PRESIDENTS RECOMMENDATION UNDER ARTICLE 117

OF THE CONSTITUTION OF INDIA

LCopy of letter No. 1-6/99-SDF, dated the 13th March, 2002 from Shri Shanta Kumar,

Minister of Consumer Affairs, Food & Public Distribution to the Secretary-General, Lok

Sabha]

The President, having been informed of the subject matter of the Sugar Development

Fund (Amendment) Bill, 2002, recommends the introduction and consideration of the Bill

in Lok Sabha under article 117(1) and (3) of the Constitution of India.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

FINANCIAL MEMORANDUM

Clause 2 of the Bill seeks to amend the Sugar Development Fund Act, 1982 to enable

the Central Government to apply the Sugar Development Fund (SDF) also for (i) making

loans to any sugar factory or unit thereof for bagassc-based co-generation power projects

and for production of anhydrous alcohol or ethanol from alcohol, and (ii) for defraying

expenditure on internal transport and freight charges to the sugar factories on export

shipments of sugar with a view to promoting its export. The expenditure on the application

of the SDF cannot be quantified, as it will depend on the demand to be made by sugar

factories. Similarly, the amount required for defraying expenditure on internal transport

and freight charges cannot be quantified, as it will depend on the quantity of sugar that will

be exported and the location of the sugar factories exporting the sugar. The expenditure on

office expenses for implementing work relating to the Scheme is likely to be of the order of

Rs. 10.00 lakhs per year.

2. The Bill does not involve any other expenditure, whether of a recurring or a non

recurring nature.

G.CMALHOTRA,

Secretary-General

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