New Delhi, May 1 (KNN)  The Central Government has offered loans at a concessional rate of two per cent below the bank rate for modernisation of sugar mills.
 
Sugar factories can avail of different kinds of loans under the provision of Sugar Development Fund, Minister of Consumer Affairs, Food and Public Distribution K V Thomas informed Lok Sabha yesterday.
 
Loans will be provided for facilitating the rehabilitation and modernization of any sugar factory; for undertaking of any scheme for development of sugarcane in the area in which any sugar factory is situated; for bagasse based cogeneration power projects with a view to improving their viability; and for production of anhydrous alcohol or ethanol with a view to improving their viability.

In 2010-11, as many as 103 sugar mills were provided loans of Rs 89303 lakhs.   The number of mills that received loans during 2011-12 and 2012-13 were 61 (Rs 54255 Lakh) and 63 (Rs 60000 Lakh) respectively.  (KNN)