**Summary:**
This document summarizes the response to Lok Sabha Unstarred Question No. 3692 regarding cooperative sugar mills (CSMs) in Tamil Nadu and their applications for assistance under the Central Sector Scheme "Grant-in-aid to NCDC for Strengthening of Cooperative Sugar Mills." The scheme, administered by the Ministry of Cooperation, provides a one-time grant of ₹1000 crore to the National Cooperative Development Corporation (NCDC) to facilitate borrowing additional funds (up to ₹10,000 crore) for loans to CSMs. These loans support the establishment of ethanol plants, cogeneration plants, and the fulfillment of working capital requirements. As of the response date (August 12, 2025), NCDC has released 109 loans totaling ₹10,005 crore to 56 CSMs nationwide.
Specifically concerning Tamil Nadu, two CSMs, M.R. Krishnamurthy Cooperative Sugar Mills Ltd. (Cuddalore District) and The Kallakuruchi Cooperative Sugar Mills Ltd. (Kallakuruchi District), applied for assistance. However, because they did not meet NCDC's direct funding eligibility norms, they were advised to submit their proposals through the State Government of Tamil Nadu. NCDC has not received any proposals from the State Government of Tamil Nadu related to these two mills, nor has it received any proposals from CSMs located in the Erode, Tiruppur, or Namakkal districts of Tamil Nadu under this scheme.
Key Entities Referenced
Tamil Nadu: A state in southern India, focus of the question regarding cooperative sugar mills.
Cooperative Sugar Mills (CSMs): A type of sugar mill that operates as a cooperative, specifically the subject of the parliamentary question.
Central Sector Scheme Grant-in-aid to NCDC for strengthening of Cooperative Sugar Mills: A government scheme providing financial assistance to cooperative sugar mills through the National Cooperative Development Corporation.
National Cooperative Development Corporation (NCDC): An organization that provides financial assistance and support to cooperatives in India.
Erode, Tiruppur, Namakkal districts of Tamil Nadu: Specific districts within Tamil Nadu mentioned in the question regarding loan applications from cooperative sugar mills.
Amit Shah: The Minister of Cooperation who provided the answer to the parliamentary question.
M.R. Krishnamurthy Cooperative Sugar Mills Ltd., Cuddalore District: One of the cooperative sugar mills in Tamil Nadu that applied for assistance under the scheme.
The Kallakuruchi Cooperative Sugar Mills Ltd., Kallakuruchi District: One of the cooperative sugar mills in Tamil Nadu that applied for assistance under the scheme.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
UNSTARRED QUESTION NO. 3692
TO BE ANSWERED ON 12th AUGUST, 2025
COOPERATIVE SUGAR MILLS IN TAMIL NADU
3692. SHRI K E PRAKASH:
Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:
(a) the number of cooperative sugar mills (CSMs) in Tamil Nadu that have applied for assistance
under the Central Sector Scheme “Grant-in-aid to NCDC for strengthening of Cooperative
Sugar Mills”;
(b) whether any cooperative sugar mills in Erode, Tiruppur, or Namakkal districts have received
loans or in-principle approval under the scheme; and
(c) if so, the details thereof along with the current status of applications received?
ANSWER
THE MINISTER OF COOPERATION
सहकारिता मंत्री (SHRI AMIT SHAH)
(a): Ministry of Cooperation, Government of India has formulated a scheme namely “Grant-in-aid
to National Cooperative Development Corporation (NCDC) for strengthening of Cooperative
Sugar Mills (CSMs)”. Under this scheme one time grant of Rs.1000.00 crore provided to NCDC
in two installment of ₹ 500.00 crore each in FY 2022-23 & FY 2024-25 for the purpose of
borrowing additional fund from the market for providing loans to the tune of ₹ 10,000 crore to
CSMs for setting up of Ethanol plant / Cogeneration plant and for meeting their working capital
requirement or all three. Under the scheme, NCDC has released 109 loans of ₹ 10,005 crore to 56
CSMs.
As per information provided by NCDC, two Cooperative Sugar Mills from Tamil Nadu—M.R.
Krishnamurthy Cooperative Sugar Mills Ltd., Cuddalore District and The Kallakuruchi
Cooperative Sugar Mills Ltd., Kallakuruchi District— applied for assistance under the Central
Sector Scheme “Grant-in-Aid to NCDC for Strengthening of Cooperative Sugar Mills.” As both
societies did not meet the direct funding eligibility norms of NCDC, they were advised to route
their proposals through the State Government of Tamil Nadu. However, no proposal has been
received by NCDC from the State Government of Tamil Nadu.(b) to (c): No proposals have been received by NCDC for financial assistance under the Central
Sector Scheme “Grant -in- Aid to NCDC for strengthening of Cooperative Sugar Mills” from the
Cooperative Sugar Mills in Erode, Tiruppur or Namakkal districts of Tamil Nadu.
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