The Union finance ministry is considering a proposal to restructure sugar mills debt, which is under severe stress due to lack of capacity utilisation. While sugar crushing begun two months ago, some mills in Maharashtra and Karnataka dont have enough sugarcane to crush and are said to be closing operations. The sugar sectors total debt is estimated at Rs 50,000 crore.
In a meeting with sugar sector representatives on Tuesday, Finance Minister Arun Jaitley stressed the need for debt restructuring. T Sarita Reddy, president of Indian Sugar Mills Association (Isma), told Business Standard: The FM gave us a patient hearing. He sounded positive. The FM said that the key issue is debt restructuring. He marked …
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