2»__

__.

THE GAZETTE OF INDIA EXTRAORDINARY

[PARI Tl—SE. 3(0]

MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

(Department of Food and Public Distribution)

NOTIFICATION

New Delhi the 19th August, 2002

G.S.R. 584 (E).— In exercise of the powers conferred by section 9 of the Sugar

Development Fund Act, 1982 (4 of 1982), the Central Government hereby makes the

following rules further to amend the Sugar Development Fund Rules, 1983, namely: -

(1)

These rules may be called the Sugar Development Fund (Second

Amendment) Rules, 2002.

(2)

They shall come into force on the date of their publication in the Official

Gazette.

In the Sugar Development Fund Rules, 1983, (hereinafter referred to as the said

rules), In rule 2: -

(I)

after clause (f) the following clause (ff) shall be inserted, namely: -

'(ft)

"Committee for rehabilitation"means the Committee constituted

by the Central Government to consider and recommend rehabilitation of a

sugar undertaking in the co-operative sector that has eroded its net

worth';

(ii)

after clause (J), the following clause (jj) shall be Inserted, namely: -

"potentially viable sick sugar undertaking' means a sugar

undertaking being In the Private or Public sector In respect of which a

scheme of rehabilitation has been sanctioned by the Board for Industrial

and Financial Reconstruction (BIFR) or being in the co-operative sector in

respect of which a scheme of rehabilitation has been recommended by

the Committee for rehabilitation'.

In the said rules in rule 16 , for the first proviso, the following proviso shall be

substituted, namely: -

"Provided that a sugar undertaking that has availed of a loan under this rule shall

be eligible for loan only on one occasion during the period in which the previous

loan under this rule or a loan under sub rule (1) of rule 21, alongwith interest

thereon has not been fully repaid".

In the said rules, in rule 17, for the first proviso, the following proviso shall be

substituted, namely: -

"Provided that the Central Government may accord sanction for a loan under this

rule to a sugar undertaking only on one occasion during the period In which the

previous loan under this rule or a loan under sub-rule (2) of rule 21, along with

interest thereon has not been fully repaid'.

In the said rules, after Chapter IX, the following Chapter X shall be inserted,

namely: -

"Chapter X

Loans for potentially viable sick sugar undertaking

21.

(1)

'A potentially viable sick sugar undertaking shall be eligible for a loan for

the modernization or rehabilitation of plant and machinery:

Provided that the loan from the Fund has been recommended in the

rehabilitation scheme for the potentially viable sick sugar undertaking by

the Board for Industrial and Financial Reconstruction or the Committee

for rehabilitation, as the case may be:

Provided further that the scheme or project for such modernization or

rehabilitation of Its plant and machinery is approved for financial

assistance by a financial institution or a scheduled bank under its relevant

scheme or sponsored by the Technology, Information, Forecasting and

Assessment Council in respect of Scheme Mission Mode Project on Sugar

Production Technologies of the Department of Science and Technology

for modernization and rehabilitation of Its plant and machinery:

Provided also that a sugar undertaking shall not be eligible for a loan

under this rule if more than one loan under rule 16 remains to be fully

repaid

(2)

A p*;U?nl'ally viable sick sugar undertaking shall be eligible for a loan for

Uu suqari.ane development:

Provided that for a scheme or project for sugarcane development In the

rehabilitation scheme for the potentially viable sick sugar undertaking

sanctioned by the Board for Industrial and Financial Reconstruction or

THE GAZhllbOF INDIA: EXTRAORDINARY

[PART II—SEC. 3(Q]

recommended by the Committee for rehabilitation, a loan from the Fund

has been recommended:

Provided further that a sugar undertaking shall not be eligible for a loan

under this rule If more than one loan under rule 17 remains to be fully

repaid.

(3)

A sugar undertaking, which has availed a loan under sub-rule (1) or sub-

rule (2), shall not be eligible to apply for a loan under this rule on any

subsequent occasion.

(4)

Any eligible sugar undertaking under sub-rule (1) shall make an

application for the loan for modernization or rehabilitation to the

Committee for rehabilitation In Form II-A along with eleven certified

copies thereof.

(5)

Any eligible sugar undertaking under sub-rule (2) shall make an

application for the loan for sugarcane development In form OT-B along

with twelve certified copies thereof to the State Government In which the

sugar undertaking Is located and the State Government may forward the

application after such scrutiny, as It deems necessary, with its comments

and recommendations to the Member-Secretary of the Committee for

rehabilitation.

(6)

The Member-Secretary of the Committee for rehabilitation shall, as soon

as may be, after receipt of an application referred to in sub-rule (4) or

sub-rule (5), place the application before the said Committee along with

his comments, if any, for the Committee's consideration.

(7)

The Committee for rehabilitation, before making a final decision on an

application, shall satisfy itself that adequate reliefs, or concessions from

the Central Government, State Government, any scheduled bank or other

bank, financial Institutions or donations from the employees of the

undertaking and other agencies, if any, have been provided In the

rehabilitation scheme and such reliefs or concessions or donations have

been accepted by the concerned agencies to be provided to the sugar

undertaking.

(8)

It shall be open to the committee for rehabilitation before making a final

decision on an application, to call for any further Information from the

applicant or any other concerned agency, if necessary.

(9)

The final decision of the Committee for rehabilitation on any application

under this rule shall be submitted to the Central Government In the form

of recommendation.

(10)

The Central Government may, after consideration of the recommendation

of the Committee for rehabilitation and any other relevant fact In respect

of a project for modernization or rehabilitation, authrorlse payment to a

sugar undertaking of such amount of loan, not exceeding the amount

required by the financial Institution or the scheduled bank to be

contributed by such sugar undertaking as promoter's contribution:

Provided that the loan from the Fund under this rule shall not exceed

sixty per cent of the eligible project cost:

Provided further that the loan from the Fund shall be granted only If the

sugar undertaking contributes a minimum of twenty percent of the

project cost from Its own resources as promoter's contribution:

Provided also that a loan from the Fund shall not be granted for the

purpose of repayment of any loan In any form availed by the sugar

undertaking or interest on any such loan in any form, whether availed

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3(I)1

from the Fund or from financial institutions, banks or any other agency

Including Government:

Provided also that the loan from the Fund shall be granted only if the

sugar undertaking has repaid all the sums, which have become due in

respect of the Fund and the Levy Sugar Price Equalisation Fund.

(11)

(i)

The loan for modernization or rehabilitation shall be disbursed by

the Central Government to the concerned sugar undertaking or paid by It

to the financial institutions for disbursement to the concerned sugar

undertaking, either in lump sum or In two or more Instalments as may be

considered necessary by the Central Government, after an agreement is

executed between the Central Government, the concerned State

Government, the participating financial institutions or scheduled banks

and the sugar undertaking concerned.

(ii)

The agreement referred to in clause (i) of this sub-rule shall

contain the terms and conditions with regard to the period of repayment

including the number and amount of instalments, payment of interest,

the manner of such repayment or payment and any other matter

incidental to the loan.

(iii)

The loan from the Fund shall carry a concessional rate of simple

interest of six per cent per annum and in case of any default in

repayment of the amount of loan, or payment of any instalment thereof

or interest thereon, an additional Interest at the rate of two and half per

cent per annum of the amount of default shall be payable by the sugar

undertaking.

(iv)

The repayment of the loan for mooo nizatlon or rehabilitation

togetherwlth interest thereon, shall commence after the expiry of such

period as may be decided by the Central Government after due

verification by financial institution subject to a maximum of five years,

reckoned from the date of disbursement of the loan from the Fund and

the loan from the Fund along with the Interest due thereon, shall be

recoverable in half-yearly instalments not exceeding ten in number.

(v)

The financial institution shall, within thirty days of receipt of any

amount from the loanee sugar undertaking by way of repayment of loan

from the Fund, payment of Interest thereon, or any other receipts, credit

the said amount to the Fund.

(12)

The Central Government may, after consideration of the recommendation

of the Committee for rehabilitation and any other relevant fact In respect

of a project for sugarcane development authorize payment to a sugar

undertaking of such amount of loan not exceeding ninety per cent of the

eligible project cost and not exceeding the amount, If any, specified under

rule 17;

Provided that the loan from the Fund shall be granted only If the sugar

undertaking or the concerned State Government contributes a minimum

of ten per cent of the project cost from its own resources:

Provided further that the loan from the Fund shall not be granted for the

purpose of repayment of any loan in any form availed by the sugar

undertaking or Interest on any such loan in any form, whether availed

from the Fund or from financial Institutions, banks or any other agency

including Government:

Provided also that the loan from the Fund shall be granted only if the

sugar undertaking has repaid all the sums, which have become due in

respect of the Fund and the Levy Sugar Price Equalisation Fund.

2609 G1/02-4

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3(i)l

(13)

(i)

The loan for sugarcane development shall be disbursed to the

concerned sugar undertaking after a tripartite agreement Is executed

between the Central Government, the concerned State Government and

the sugar undertaking.

(II)

The tripartite agreement referred to In clause (I) of this sub-rule

shall contain the terms and conditions as the Central Government may

decide In consultation with the State government such as monitoring of

the progress of the project by a research Institute or any other

organization as may be decided by the Central Government, repayment

of the loan with Interest, remittance to the credit of the Fund, utilization

certificate by the concerned State Government and any other matter

Incidental to the loan.

(iii)

the loan from the Fund shall carry a concessional rate of simple

Interest of six per cent per annum and In case of any default in

repayment of the amount of loan, or payment of any Instalment thereof

or interest thereon, an acM'^nal interest at the rate of two and a half per

cent per annum on the anounl of cia>j!i. shall be pavabie by the sugar

undertaking.

(Iv)

The repayment of loan for sugarcane development together with

Interest thereon shall commence on the expiry of moratorium period of

one year reckoned from the date of disbursement of the loan and shall be

repaid In equal half-yearly instalments not exceeding eight in number and

Interest thereon shal be paid half-yearly after the expiry of one year from

the date of disbursement of the loan".

In the said rules, after form-II and annexures thereof, the following Form - I I A

and annexures shall be Inserted, namely: -

FORM - I I A

[See rule 21 (4)]

Application for financial assistance from Sugar Development Fund

towards promoter's contribution for financing modernization/

rehabilitation scheme

Name of applicant:

Address:

(i) Registered Office:

(ii) Location of the factory:

Constitution (whether co-operative society,

private/ public Ltd. company, Joint Sector/

Public Sector Company):

Date of Incorporation/ Registration

Management:

(a) Board of Directors:

(b) Executive set-up

Particulars of the order of the Board For

Industrial and Financial Reconstruction on the

rehabilitation

scheme

sanctioned

It/

recommendations

of the

Committee for

rehabilitation (enclose a copy of the Board For

Industrial and Financial Reconstruction Order/

recommendation

the

Committee

for

rehabilitation):

Brief description of the proposed project

(Enclose a copy of the Proje^ Report":

Actual performance and expected pei-formance

on completion of the Scheme/ project for

which this loan application has been made

please indicate In the manner below:

_ _

THE GAZETTE OF INDIA EXTRAORDINARY

[PART U—SEC 3(I)1

(A) Salient production and Operation Results

(a)

Actual (b)

expected on

Performance

completion of the

scheme/ project for

which

loan

application has been

made

Year ended

19 20 20

(1) Licensed crushing capacity (TCD)

(2) Installed crushing capacity (TCD)

(3) Area under sugarcane (Acres)

(4) Average yeldl (tones/ acres)

(5) Total production of sugarcane In the

area (lakh tones)

(6) Gross duration of the season (days)

(7) Net duration of the season (days)

(8)

Percentage of hours lost to total

available hours

(9) Average dally rate of crushing (tones)

(a) Including stoppages

(b) Excluding Stoppages

(10) Total cane crushed ((lakh tones)

(11) Pol%cane

(12) Total sugar losses% cane

(13) Average sugar recovery %

(14) Total sugar produced (Quintals)

(15) Reduced mill extraction (%)

(16) Reduced boiling House Extraction (%)

(17) Reduced Overall Extraction (%)

(18) Extra Fuel consumption % cane

NOTE: (i) In case of the performance has not

been up to the accepted norms and if ther has

been wide fluctuation in the performance,

please state the reasons, in brief.

NOTE:

(il)

Please furnish Installed capacity,

Production and efficiency figures in respect of

other activities, if any, such as distiller, paper

unit etc.

(B) Working results:

(1) Net Sales

(2) Gross Profit/ loss

(3) Interest on: -

(a) Term loans

(b) Working capital

(4) Depreciation

(5) Operation profit (loss)

(6) Tax

(7) Net Profits Loss

(8) Cash accruals

(9) Applicable statutory cane price fixed by

the Government of India (Rupees per

quintal)

(10) Actual cane price paid (Rupees per

quintal)

(1)

(a) Gross fixed assets including work in

progress

(b) Less Depreciation

(2)

Net fixed assets

(3)

Investments

(4)

Current Assets

(5)

Current Liabilities

(6)

Net Working Capital [(4) minus (5)]

(7)

Net tangible assets [(2)+(3)+(6)]

(8)

Long-term liabilities

(9)

Shareholder's worth [(7) minus 98)]

(10)

Share capital including share suspense

and non-refundable deposits

(11)

Reserves and surplus

(12)

Deficit in Profit and Loss Account and

Intangible assets.

(13)

Net Worth t(10+(ll)minus(12)]

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART II—SEC. 3(i)l

Whether the project has been approved by the

All-India

Financial

Institutions/

scheduled

banks/ Technology Information, Forecasting

and Assessment Council (TIFAC) for assistance

under the SDF: -

(a) If so, enclose a certified true copy of the

"Letter of Intent" Issued by the Lead

Institution

(b) Ust out any condition (s) of material

nature stipulated by the Lead Institutions

Including Rate of Interest, repayment

period and security:

10. (a)

What are the reliefs or concessions from

the

Central

Government,

State

Government,

Financial

Institutions,

Scheduled Bank, Other Banks, financial

Institutions

donations

from

the

employees of the sugar undertaking &

other agencies, if any included in the

Order of the BIFR/ recommendation of the

Committee for rehabilitation,

(b)

Whether the concerned agencies have

agreed

provide

these

reliefs/

concessions to the sugar undertaking? If

so, copies of the consent letters from the

concerned agencies are to provide along

with this application form.

11.

Measures proposed to be taken by the sugar

undertaking for rationalization of manpower

and for reducing expenditure, particularly

overheads.

12.

Cost of the project (as approved by the all-

India Financial Institutions/ scheduled banks/

Technology

Information,

Forecasting

and

Assessment Council (TIFAC).

Please furnish

break-up and certified true copy of the

approval.

13.

Means of Financing, Debt-Equity Ratio and

Security margin (as approved by the all-India

Financial

Institutions/

scheduled

banks/

Technology

Information,

Forecasting

and

Assessment Council (TIFAC).

_21

14.

Percentage

and

amount

Promoter's

Contribution

stipulated

the

all-India

Financial

Institutions/

scheduled

banks/

Technology

Information,

Forecasting

and

Assessment Council (TIFAC).

15.

Amount of assistance required from Sugar

Development

Fund

towards

promoter's

Contribution along with justification therefore

having

regard to

the

financial

position/

Resourcefulness of the applicant concern/ its

promoters.

16.

Security proposed to be provided for the loan

applied for: -

(a) Bank Guarantee

(b) State Government Guarantee

17.

Schedule of Implementation of the project

18.

Please furnish a summary of the projected

profitability/ cash flow statements for 10 years

after completion of the scheme (in the

proforma at Annexure - I and II) along with

critical assumptions.

Place:

Signed by:

Name:

D a t e :

Designation:

Name

and

address

the

sugar

undertaking (Occupier)

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SEC 3(i)]

ANNEXURE-I TO FORM-II-A

Name of the concern/Society

Summary of Projected profitability and cash flow

(This statement should be prepared for a period of 10 years)

(Amount In Rupees in lakhs)

Year

No. of working days

% output to installed capacity production

(quantity)

Net sales (exclusive of excise duty)

Gross

operating

profit

before

depreciation, interest, (on term loans

and deferred Payments), management

remuneration,

Sde

Selling

Agency

Commission and Tax.

Depreciation

Interest

(on

term

loans/deferred

Payments)

Management remuneration

Selling Agency Commission

Operative Profit before tax

[2 minus (3+4+5+6)]

Non-operating income

Profit before tax (7+8)

10.

Tax

11.

Net profit after tax (9 minus 10)

12.

Development rebate reserve/Investment

Allowanced Reserve

13.

Net distributable profit (11 minus 12)

14.

Gross cash flow (3+12+13)

15.

Preferable dlvidend-

Amount

Rate

16.

Equity dividend-

Amount

Rate

17.

Retained profit [13 minus (15+16)]

18.

Net cash flow [14 minus (15+16)]

19.

Funds available to pay Interest (11+4)

20.

Interest coverage (19+4)

21.

Cash available for debt service (14+4)

22.

Total debt deferred service (instalments of

term loans, deferred payments and interest

on terms loans and deferred payments

falling due in the year)

23.

Debt Service Coverage (21+22)

Profitability Ratios

24.

Percentage of operating profit before tax to

net sales

25.

Return or capital employed

26.

Percentage of profit after tax to equity

capital

27.

Investment output Ratio Capital employed

to sales ratio, investment output ratio

28.

Gross value added to net sales (%)

Note:-

Items 27 and 28 shall be computed in the same manner as done for the

purpose of securing loan under the soft loan scheme of the financial

institutions.

Signed by :

Name

Designation

Name and address of the

Place :

Sugar undertaking

Date:

(Occupier)

2609 G1/02-5

•

(

—

(

)

ANNEXURE - I I TO FORM - I I - A

CASH FLOW STATEMENT

(This statement should be prepared for a period of 10 operating years)

(In thousands of rupees)

Construction period

Operating years

(Half-yearly)

20 20

SOURCES OF FUNDS

Share issue

Profit before taxation with interest added

back

Depreciation Provision for the year

Development rebate reserve/ investment

Alloance Reservef.

Increase in secured medium and long-

term borrowings for the projects.

Other medium/ long-term loans.

Increase

unsecured

loans

and

deposits.

Increase

liabilities

for

deferred

payment

(including

interest)

machinery suppliers.

Sale of fixed assets

10.

Sale of investment

11.

Other income (indicate details)

Total (A)

(in thousands of rupees)

Construction period

Operating years

(Half-yearly)

DISPOSITION OF FUNDS

Capital expenditure for the project

Other normal capital expenditure

Increase In working capital

Decrease in secured, medium and long-

term borrowings

"'All India Institutions

~State Financial Corporations

~Banks

Decrease

unsecured

loans

and

deposits.

Decrease In Bank Borrowings for working

capital.

Decrease

liabilities

for

deferred

payments

(including

interest)

machinery suppliers.

Increase

investment

other

companies

Interest on term loans.

10.

Interest on bank borrowings for working

capital.

11.

Taxation

12.

Dividends-Equity Preference

13. Other expenditure (indicate details)

Total (B)

THE GAZETTE OF INDIA EXTRAORDINARY

[FART II—SEC 3(I)1

14.

Opening Balance of Cash in Hand and at

bank

15. Net surplus/ deficit ( A- B )

Closing balance of Cash in hand and at

Bank

NOTE: -

Detailed working of the figures shown should be provided.

Borrowing (As well as repayments) for the project and for other

purposes should be shown separately.

Place:

Signed by:

Name:

Date:

Designation:

Name

and

address

the

sugar

undertaking (Occupier).

In the said rules, after Form -III A, the following Form -III B shall be Inserted,

namely: -

FORM - IIIB

[See rule 21 (5)]

Application for financial assistance for sugarcane development

(To be submitted through the State Government)

Name and address of the sugar undertaking

Year of installation

Constitution (Whether co-operative society,

Private/ Public Ltd. Company, Joint Sector/

Public Sector Company)

Cane crushing capacity (tones per day)

Quantity

of"cane

crushed

during

the

preceding three sugar years

Purpose for which loan is applied for

(enclose a detailed report on the project/

scheme proposed to be implemented)

Preceding 3 sugar seasons

Year

(a) Area under sugarcane (hectares)

(b) Average Yield (tones per hectare)

area (in lakh tones)

(d) Gross duration of the season (days)

(e) Net duration of the season (days)

THE GAZETTE OF INDIA. EXTRAORDINARY

[PART II—SEP. 3(i)|

Expected benefits on completion of the

sugarcane development scheme/ project for

which loan Is applied for

(a)

Increase in the area of sugarcane

(hectares)

(b)

If change in cane varieties is proposed

to be undertaken and if so, furnish

details of the same.

(c)

Expected average yield (tones per

hectare)

(d)

Expected Increase in total production

of sugarcane in the area (in lakh

tones) as compared to 7 (c) above.

(e)

Expected improvement in recovery

percent cane

Measures

for

monitoring

proposed

sugarcane development scheme:

(a)

Whether technically qualified persons

are available with sugar undertaking,

and If so, details of their qualifications

& experiences.

(b)

Mechanism and system of reporting of

the

progress

sugarcane

development scheme to the monitoring

agency, as may be decided by the

Central Government and to the State

Government.

10.

(a) Whether grant of loan from the SDF for

modernization/rehabilitation/ technology

upgradation of the plant and machinery

of the sugar undertaking has been

recommended by the BIFR or the

Committee for rehabilitation.

(b) If so, has the sugar undertaking applied

for such a loan from the SDF.

11.

(a)

What are the reliefs/concessions from

various agencies inducting FIs/ Banks/

Central

Government/

State

Government/

donations

from

the

Employees of the sugar undertaking

included In the rehabilitation scheme

recommended

by the

BIFR/

the

Committee for rehabilitation?

(b)

Whether the concerned agencies have

agreed

provide

the

reliefs/

concessions to the sugar undertaking.

Enclose copies of letters received from

the concerned agencies.

12.

Measures proposed to be taken by the sugar

undertaking for rationalization of manpower

and for reducing expenditure, particularly

overheads.

13.

Details of assistance available from agencies

other than the Central Government for the

project/ scheme for which this loan has been

applied.

14.

Reasons, if any, for not availing of such

assistance.

15.

(a)

How much of the cane area has been

allotted to the sugar undertaking by the

State Government?

(b)

Period for which the cane area has

been allotted to the sugar undertaking?

(c)

Whether the cane area allotted to the

sugar undertaking is adequate for

achieving the expected benefit on

completion of the scheme?

16.

Whether the proposed project/ scheme is

covered in full or In part by any scheme of

the State Government or any other agency

for the development of sugarcane In the

area of the applicant sugar undertaking.

40_

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—SKC 3(i)]

17.

Amount of loan applied for

18.

Means of financing the total

cost' of

implementation of the project/ scheme

19.

Security proposed to be provided for the

foan sought

20.

Proposed mode of repayment of the loan

Place: -

Signature:

Date: -

Name and Designation:

Name and address of the sugar undertaking

[FNo 1-3/2001-SDF]

R N DAS, Jt Secy

NOTE:- The principal rules were published in the Gazette of India Vide

number GSR 752 (E) dated 28.09.1983 and subsequently amended vide: -

(I)

GSR 817 (E) dated 20.12.1984

{II)

GSR 838 (E) dated 14.11.1985

(iii)

GSR 551 (E) dated 06.05.1988

(iv)

GSR 235 (E) dated 24.04.1991

(v)

GSR 441 (E) dated 28.04.1992

(vi)

GSR 435 (E) dated 06.05.1994

(vii)

GSR 27 (E) dated 12.01.1996

(vlii)

GSR 656 (E) dated 21.11.1997

(ix)

GSR 91 (E) dated 12.02.2001

(x)

GSR 886 (E) dated 06.12.2001

(xl)

GSR 443 (E) dated 21.06.2002

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