AI SummaryInterest Subvention against long terms loan to the Co-operative sugar societies (Normal Area) (Tribal Area) is a Gujarat government scheme run by the Agriculture, Farmers Welfare and Cooperation Department. It gives interest subsidy to cooperative sugar societies that took bank loans to clear sugarcane arrears for the 2018-19 season.
Scheme has been closed or it was a one time scheme which has been closed by the government.
Under this support, Government of India covers one year of interest starting from the date of loan withdrawal. After that, state government extends the subsidy for a maximum of four years, covering the lower of the actual interest paid or 7%.
Interest Subvention against long terms loan to the Co-operative sugar societies (Normal Area) (Tribal Area) - Introduction
Interest Subvention against long terms loan to the Co-operative sugar societies (Normal Area) (Tribal Area) is a scheme by the Agriculture, Farmers Welfare and Cooperation Department, Gujarat. It gives interest subsidy to cooperative sugar societies that secured loans to pay sugarcane arrears for the 2018-19 season.
Under this support system, central government covers one year of interest subsidy starting from the loan withdrawal date. Following this, state government extends the subsidy for a maximum of four years, covering the lower of either the actual interest paid or 7%.
Key Information
| Scheme Name | Interest Subvention against long terms loan to the Co-operative sugar societies (Normal Area) (Tribal Area) |
| Level | State |
| Scheme For | Infra |
| Beneficiary State | Gujarat |
| Category | Agriculture, Rural & Environment |
| Target Beneficiaries | Registered Societies |
| Sub Category | Financial assistance |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Agriculture, Farmers Welfare and Cooperation Department |
Benefits
This scheme eases the debt burden for eligible societies by providing interest subsidy. Government of India covers the first year of interest from the date of loan withdrawal. After that, state government provides a subsidy on the actual interest payable or 7%, whichever is lower, for up to 4 years or until the loan is fully repaid.
| Component | Standard of Assistance |
| Interest Subvention | Actual interest paid or 7% (whichever is less) for a maximum of 4 years. |
Eligibility
Sugar Co-operative Societies that obtained a bank loan specifically to clear sugarcane arrears for the 2018-19 season are eligible to apply for this interest subsidy.
Application Process
If you represent an eligible sugar cooperative society, you should prepare your proposal and submit it through the District Registrar of your district. The District Registrar will then forward your documents to the Director of Sugar, Gujarat State, Gandhinagar, for processing.
You can find the contact details for your District Registrar by visiting this official tracking portal.
Director of Sugar Office:
Address: Dr. Jivraj Mehta Bhavan, Block No. 8, 2nd floor, Gandhinagar
Phone: 232-53437
Email: directorsugar@gmail.com
Documents
To complete your application process, you should keep the following documents ready:
- Loan sanction letter issued by the bank.
- Documentary proof showing the loan was used for sugarcane arrears payment.
- FRP notification issued by the Government of India (dated 02/03/2019).
- Audit reports of your sugar cooperative society.
- Loan repayment schedule and relevant bank statements.
- Any additional documents requested by the department.
References
For further guidance, you may refer to these official documents:
FAQ's
What is the purpose of this scheme?
The purpose of this scheme is to provide financial relief to sugar cooperative societies by subsidizing the interest on loans taken for clearing sugarcane arrears for the 2018-19 season.
Who is eligible to apply for this scheme?
Only sugar cooperative societies that have taken a bank loan to pay sugarcane arrears for the 2018-19 season are eligible to apply.
What kind of financial assistance is provided under this scheme?
The scheme provides interest subsidy for a maximum period of 4 years. Government of India pays the first year's interest, while state government provides a subsidy of up to 7% or the actual interest paid, whichever is lower, for the remaining period.
Can private sugar mills apply for this scheme?
No, only sugar cooperative societies are eligible under this scheme. Private sugar mills cannot apply.
What is the maximum duration for which interest subsidy is provided?
The interest subsidy is provided for a maximum period of four years or until the loan is fully repaid, whichever comes earlier.
Can a sugar cooperative society apply for this scheme if it has already repaid the loan?
No, the scheme is applicable only for ongoing loans taken for sugarcane arrears of the 2018-19 season. Societies that have already repaid their loans are not eligible.
Can a sugar cooperative society apply for multiple loans under this scheme?
No, a sugar cooperative society can get interest subsidy only for a single loan taken for clearing sugarcane arrears of the 2018-19 season.
How is the interest subsidy amount calculated?
The interest subsidy amount is calculated based on the actual interest paid on the loan or 7%, whichever is lower, for a maximum period of four years or until the loan is repaid.
What is the process for applying under this scheme?
Eligible sugar cooperative societies should submit their proposals through the District Registrar of the concerned district. The proposal is then forwarded to the Director of Sugar, Gujarat State, Gandhinagar, for approval.
Where can sugar cooperative societies get more information?
Sugar cooperative societies can contact the District Registrar of their area or the office of the Director of Sugar, Gujarat State, Gandhinagar, for more details.