UP co-op banks to lend Rs 3,221 cr to sugar mills ahead of crushing season

Estimated working capital needs of the units rises 20% this season, state govt to stand guarantor for loans

With the 2019-20 crushing season in Uttar Pradesh less than two months away, cooperative banks are said to be extending working capital loans worth Rs 3,221 crore to mills in India's top sugar-producing state.

Currently, there are 23 factories operated by the government-managed UP Cooperative Sugar Mills Federation Limited in the state.

In a cabinet meeting chaired by chief minister Yogi Adityanath yesterday, the state government cleared the proposal of standing as guarantor to the cooperative banks for the estimated working capital requirement of Rs 3,221 crore by the federation mills in 2019-20.

This would enable the mills to carry out necessary maintenance