A third-party evaluation revealed that out of 312 cooperative sugar mills, 102 were non-functional. The Ministry, in consultation with state governments, is working to revive viable non-functional mills. So far, NCDC has disbursed ₹10,005 crore under the scheme, covering working capital, ethanol plants, and cogeneration projects.
Financial Assistance Breakdown
- Working Capital: ₹9,656.90 crore
- Ethanol Plants: ₹251.40 crore
- Cogeneration Power: ₹97.12 crore
In total, 56 cooperative sugar mills have benefitted from these interventions, enabling timely payout of cane dues and improved business operations.
Impact of the Scheme
The scheme, evaluated by a third party, demonstrated that NCDC’s financial assistance offered lower interest rates than market counterparts and established a benchmark in transparency and documentation. This has facilitated easier access to funds for CSMs, reduced outstanding cane bills, and ensured smooth operations for farmers and workers alike.
Implementation and Monitoring
While the scheme does not include an interest subvention component, NCDC, as the nodal agency, implements strict guidelines for recovery, monitored by its Board of Management. This ensures responsible utilization of funds and accountability in strengthening cooperative sugar mills across India.