The state Cabinet on Tuesday decided to implement a soft-loan scheme for cooperative sugar factories which were not eligible for the Central government soft-loan scheme. In all, 22 sugar factories in the state would benefit from the decision and would be able to go for crushing for the next season of 2015-16.

The state Cabinet has also decided to extend the scheme to those sugar factories which had paid more than 50% of the fair and remunerative price (FRP) to sugarcane growers in the last season. A total of 22 factories in the state would benefit from the scheme by availing Rs187.76 crore loan. The state government would pay Rs56.33 crore towards the interest for the next five years.

Sugar commissioner Vipin Sharma informed that 147 sugar factories in the state were eligible for the soft-loan scheme of the Union government. However, 22 factories were left out. The Central scheme had the condition that the sugar factories should have gone for crushing in last two seasons of 2013-14 and 2014-15, Sharma said, adding that the state Cabinet decision would enable the 22 factories to go for crushing next season.

The state government decided to provide soft loan primarily because it wanted sugar factories to pay the cane growers their dues towards FRP for the 2014-15 season.