COOPERATIVE SUGAR MILL IN TARN TARAN - 29th July 2026 - Ministry of Cooperation - Gazette Notification PDF

Summary of Policy on Cooperative Sugar Mills

Overview The Ministry of Cooperation has conducted a study to identify scope for efficiency improvements within sugar cooperatives nationwide. This study encompasses cooperative sugar mills in Punjab, specifically including the Shero cooperative sugar mill in Tarn Taran.

Financial Assistance and Revitalization The National Cooperative Development Corporation (NCDC), a statutory body under the Ministry of Cooperation, is responsible for providing financial assistance for the revival and modernization of Cooperative Sugar Mills (CSMs). Assistance is provided either directly to the mills or through State Governments, contingent upon project viability and NCDC guidelines.

Strengthening Scheme and Key Metrics To address operational and financial distress, the Ministry formulated the “Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills (CSMs)” scheme. Key financial data points include:

• Total Grant: A one-time grant of Rs. 1,000.00 crore was provided to the NCDC.
• Installments: The grant was disbursed in two installments of Rs. 500.00 crore each during FY 2022-23 and FY 2024-25.
• Loan Objective: The grant enabled NCDC to borrow additional funds from the market to provide Rs. 10,000 crore in loans to CSMs.
• Purpose of Funds: Loans are designated for the establishment of Ethanol plants, Cogeneration plants, and for meeting working capital requirements.
• Disbursement Data: As of March 31, 2025, the NCDC has disbursed Rs. 10,005 crore to 56 CSMs across the country.

Official Source This information was officially disclosed by Shri Amit Shah, Union Home Minister and Minister of Cooperation, in a written reply to the Rajya Sabha. (Release ID: 2291140; Dated: July 29, 2026).