<p>Cooperation Minister ST Somashekhar on Tuesday moved to act against sugar factories that have defaulted on loans borrowed from cooperative banks.</p>.<p>At a meeting to review the district cooperative central (DCC) banks, Somashekhar found that 119 sugar factories had outstanding loans worth Rs 5,229 crore of which Rs 4,864 crore was active.</p>.<p>“But loans amounting to Rs 365 crore have become non-performing assets (NPA). I have sought a comprehensive report on this to be given to me within a week,” Somashekhar said.</p>.<p>Many sugar factories are owned by politicians. “There’s no question of protecting anyone,” he added.</p>.<p>“I have asked for details such as which sugar factory owes how much, who the owner is, when the loan was given and so on. I will make these details public once I get them,” the minister said.</p>.<p>Somashekhar said he had directed officials to come out with a policy to govern lending to sugar factories. “Lending should be based on repayment capacity,” he said. It was also decided to organize a statewide ‘loan mela’ to help the poor and middle class, Somashekhar announced.</p>.<p>The DCC banks in Belagavi, Kalaburagi, Bengaluru and Mysuru divisions will be made ‘Janasnehi’ (people-friendly) banks and steps will be taken to extend credit facilities to the poor, middle-class people, he said.</p>.<p>So far, DCC banks have given crop loans worth Rs 842 crore to 1.10 lakh farmers SC/ST farmers. Overall, 22.52 lakh farmers got Rs 13,577 crore in crop loans in 2019-20 fiscal.</p>.<p>“Repayment rate is 94%, which is good,” Somashekhar noted. The credit target for 2020-21 is Rs 14,500 crore for 24.50 lakh farmers, he said.</p>.<p>During the Covid-19 pandemic, 41,836 Asha workers out of the total 42,537 have received an incentive of Rs 3,000 each. “The incentive will be distributed among the rest soon,” the minister said.</p>
<p>Cooperation Minister ST Somashekhar on Tuesday moved to act against sugar factories that have defaulted on loans borrowed from cooperative banks.</p>.<p>At a meeting to review the district cooperative central (DCC) banks, Somashekhar found that 119 sugar factories had outstanding loans worth Rs 5,229 crore of which Rs 4,864 crore was active.</p>.<p>“But loans amounting to Rs 365 crore have become non-performing assets (NPA). I have sought a comprehensive report on this to be given to me within a week,” Somashekhar said.</p>.<p>Many sugar factories are owned by politicians. “There’s no question of protecting anyone,” he added.</p>.<p>“I have asked for details such as which sugar factory owes how much, who the owner is, when the loan was given and so on. I will make these details public once I get them,” the minister said.</p>.<p>Somashekhar said he had directed officials to come out with a policy to govern lending to sugar factories. “Lending should be based on repayment capacity,” he said. It was also decided to organize a statewide ‘loan mela’ to help the poor and middle class, Somashekhar announced.</p>.<p>The DCC banks in Belagavi, Kalaburagi, Bengaluru and Mysuru divisions will be made ‘Janasnehi’ (people-friendly) banks and steps will be taken to extend credit facilities to the poor, middle-class people, he said.</p>.<p>So far, DCC banks have given crop loans worth Rs 842 crore to 1.10 lakh farmers SC/ST farmers. Overall, 22.52 lakh farmers got Rs 13,577 crore in crop loans in 2019-20 fiscal.</p>.<p>“Repayment rate is 94%, which is good,” Somashekhar noted. The credit target for 2020-21 is Rs 14,500 crore for 24.50 lakh farmers, he said.</p>.<p>During the Covid-19 pandemic, 41,836 Asha workers out of the total 42,537 have received an incentive of Rs 3,000 each. “The incentive will be distributed among the rest soon,” the minister said.</p>
