ifci limited new delhi presentation 171219.pdfsugar factory is situated, including to a potentially...
TRANSCRIPT
Sugar Development Fund
IFCI Limited New Delhi
Dated: 17/12/2019
Dr. Emandi Sankara Rao
MD & CEO
IFCI Ltd. is the Nodal Agency for channelizing the Sugar development Fund (SDF) of the Government of India since inception of the Fund in 1986. IFCI monitors the SDF loans sanctioned to private sugar factories for modernization-cum-expansion, setting-up of bagasse based Cogeneration Power Projects, manufacture of Ethanol from alcohol/molasses, Zero Liquid Discharge (ZLD) distillery projects, cane development schemes.
As a Nodal agency of GOI, IFCI is primarily responsible for examination/execution of loan proposals and security documents, recommendation to GOI for release of funds, undertaking site visits for verification of physical and financial progress, verification of utilization of loan monies released by SDF, maintaining loan accounts of borrowers, recovery of SDF dues, taking legal actions against defaulters, etc.
The Sugar Development Fund Act, 1982 and Rules read along with Amendments and Guidelines provides for the following purposes for which the fund shall be applied: (i) Making loans for facilitating the rehabilitation and modernization of any sugar factory or any unit thereof, including to a potentially viable sugar undertaking. (ii) Making loans for undertaking any scheme for development of sugarcane in the area in which any sugar factory is situated, including to a potentially viable sugar undertaking. (iii) Making grants for the purpose of carrying out any research project aimed at the promotion and development of any aspect of Sugar Industry. (iv) Defraying expenditure to a sugar factory on internal transport and freight charges on export shipment of sugar with a view to promoting its export. Cont……..
(v) Making loans to any sugar factory having an installed capacity of 2500 TCD or higher to implement a project of bagasse based cogeneration of power (under review). (vi) Making loans to any sugar factory having an installed capacity of 2500 TCD or higher for production of anhydrous alcohol or ethanol from alcohol or molasses with a view to improving its viability (under review). (vii) Defraying expenditure to a sugar factory for the purpose of building up and maintenance of buffer stock with a view to stabilizing price of sugar. (viii) Defraying expenditure for the purpose of financial assistance to sugar factories towards interest on loans given in terms of any scheme approved by the Central Government from time to time. (ix) Defraying any other expenditure for the purpose of the Act. (x) Making loans to any sugar factory for conversion of existing ethanol plant into Zero Liquid Discharge plant.
Total Sanction : Rs. 6847.52 Crore Total Disbursement : Rs. 5663.98 Crore Agency Commission : Rs. 243.20 Crore Status as on 30/09/2019 Total Exposure: Rs. 2913.25 cr. Number of Loan Accounts : 199 Number of Sub-Loan-Accounts : 284
Cumulative Figures
Note: The data used in the ppt is based on best available information and updated at few places best on information as available.
Year wise number of cases Sanctioned
No
. of
Cas
es
2
5
9
22
21
14
19
7 8
5
9
7
14
16
6
4
15
3
11
12
8
18
40
25
41
49
24
52
19
8
12
17
11
6
4
19
85
-86
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
20
18
-19
20
19
-20
NO OF CASES
Year wise Amount Sanctioned
INR
in C
rore
1.7
9
4.4
6
6.2
4
46
.24
49
.70
40
.97
96
.26
24
.93
37
.17
27
.82
42
.49
54
.44
89
.03
15
4.1
9
67
.49
42
.57
13
5.6
6
34
.54
16
4.9
6
14
2.3
9
73
.97
37
4.2
5
75
9.8
7
50
2.6
3
82
9.8
8
29
7.9
7
22
7.4
8
51
4.3
1
47
5.0
0
28
5.0
0
31
5.0
0
51
7.0
0
23
4.3
2
16
3.5
9
13
.52
19
85
-86
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
20
18
-19
20
19
-20
AMOUNT SANCTIONED
Year wise Disbursement
INR
in C
rore
1.7
9
4.4
6
6.2
4 4
6.2
4
49
.70
40
.97
89
.09
24
.39
37
.17
26
.93
42
.49
54
.44
82
.69
15
1.2
6
67
.49
42
.57
13
2.5
8
34
.54
16
3.5
6
12
6.4
9
71
.72
34
2.8
1
26
8.1
8
44
1.9
4
52
1.3
1
54
3.0
7
34
0.4
9
35
3.0
5 4
18
.00
27
0.0
0
12
1.0
0
11
2.0
0
38
1.1
2
23
6.8
3
60
19
85
-86
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
20
18
-19
20
19
-20
AMOUNT DISBURSED
Agency Commission Structure
• The commission for actual recovery is 2% • The Commission for Outstanding Amount is as detailed
under:
Commission (%) of
Outstanding Loans
Commission is applicable for
following period
Commission(%) applicable for
remaining period
Modernization 0.5% 3 Yr 0.25%
Cogeneration 0.5% 2 Yr 0.25%
Ethanol/ZLD 0.5% 1 Yr 0.25%
Cane Development
0.20% 2 Yr 0.10%
No commission are paid by SDF/GOI for default cases (i.e.) cases where company is in default for 2 or more due dates
Year wise Commission earned by IFCI
Rs.
in C
rore
0.0
1
0.0
3
0.0
8
0.3
3
0.5
4
0.8
4
1.2
2
1.3
8
1.6
5
2.0
6
2.2
6
2.6
1
3.0
2
3.7
5
4.2
4
4.6
9
5.3
3
5.6
3
5.9
7
6.7
5
7.0
1
11
.28
8.1
7 1
1.4
0 14
.59
16
.91
17
.56
19
.33
18
.23
16
.04
15
.50
13
.78
10
.00
11
.00
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
20
18
-19
20
19
-20
COMMISSION
COMMISSION
Total Outstanding as on 31/03/2019 : Rs.2964.57 Crore R
s. in
Cro
re
1,447.36
1,020.65
340.65
155.91
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
Amount Outstanding
Modernization Cogenration Ethanol/ZLD Cane Development
48.82%
34.43%
11.49%
5.26%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Percentage of Amount Outstanding
Modernization Cogenration Ethanol/ZLD Cane Development
Total Outstanding as on 30/09/2019 : Rs. 2,913.25 Crore R
S. In
Cro
re
1,444.36
1,002.28
342.38
124.23
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
Amount Outstanding
Modernization Cogeneration Ethanol/ZLD Cane Development
49.58
34.40
11.76
4.26
-
10.00
20.00
30.00
40.00
50.00
60.00
Percentage of Amount Outstanding
Modernization Cogeneration Ethanol/ZLD Cane Development
Outstanding Position as on 30/09/2019
Status of Default Accounts as on 17/12/2019
Rs. In Cr.
S. No. Particulars No. of
Accounts Principal
Outstanding Interest
Outstanding Total
Outstanding %
1 Regular Accounts 134
1,002.32
113.14 1,115.46 38.29%
2 Accounts with less than 2 defaults 14
51.27
2.54 53.81 1.85%
3 Accounts with 2 or more than 2 defaults 136
872.68
871.30 1,743.98 59.86%
Total 284
1,926.27
986.98 2,913.25 100.00%
S.No. Particulars No. of Accounts
1 Legal Action Taken 87
2 Legal Action to be Taken 49*
Total 136
*Out of 49 cases, recall notice has been issued for 46 Loan Accounts
Period No. of Regular
Accounts
No. of
Default
Accounts
Total No.
of
Accounts
Default
Amount
in crore
Security
Prior to 30/06/2013 69 88 157 896.81
Loans are originally
secured by way of
second charge
After 30/06/2013 65 62 127 690.16
Loans are mainly
secured by way of First
pari-passu charge
Total 134 150 284 1586.97
An over view of the accounts as on 30/09/2019
• Cyclical Industry • Low Yield of Sugarcane • Old and obsolete machinery • Low rate of recovery • Low per capita consumption • Short crushing season • Fluctuating Production Trends • Mismatch between cost of production
and sale price
Challenges for Sugar Factory
• No provision for One time Settlement of default cases
• DRT Process is time consuming and post issuance of RC, even if we go for sale, proceed will first go to 1st charge holder and residual, if any, will come for 2nd Charge Holder.
• Companies cannot be declared as wilful defaulter under SDF as RBI is not agreeable
Limitations in SDF Rules
Contact Details: Jagdish Garwal Deputy General Manager Email : [email protected] Mobile: 9599193795
Ram Sharan Assistant General Manager Email : [email protected] Mobile: 9990725701
Manoranjan Sarma Assistant General Manager Email : [email protected] Mobile: 9990725724