Friday, October 21 2005 18:40 Hrs (IST) - World Time -

Bangalore: Karnataka Government has approved proposals by 22 sugar factories seeking its nod to secure Rs 300 crore soft loan from National Cooperative Development Corporation (NCDC) and Sugar Development fund for funding expansion and modernisation plans, Minister for Sugar and Textiles Amaregouda Bayyapura said today (Oct 21, 2005).

The Cabinet Sub-Committee, which met, recently approved the request by ten cooperative sugar mills for Rs 100 crore soft loan at the rate of Rs 10 crore each and another Rs 200 crore sought by 12 private sugar factory managements, he told the press here.

The proposal has been forwarded to the Finance Department for final clearance, which would help factories to get soft loan at the rate of four per cent interest, he said.

There was a proposal to lease four sugar factories situated in Bramhavar, Aland, Pandavapura and Haveri to private sector and tenders in this regard would be called in about a month's time.

Those private firms bidding for the lease would have to comply with the guidelines set by the government including execution of bank guarantee and an undertaking for timely payment of sugarcane dues to farmers, he said.

Bayyapura said the government was contemplating to introduce a pension scheme for to weavers who have attained sixty years of age on the Tamil Nadu model.

A survey is on to identify the eligible weavers, he said adding, those selected would be paid Rs 250 pension per month.