**Executive Summary**
This document responds to an unstarred question in the Lok Sabha on December 3, 2025, regarding loans to sugar mills under the Sugar Development Fund (SDF). The document outlines the schemes and financial assistance provided under the SDF Act of 1982 and related rules, until the scheme's closure on September 21, 2021. Details include the amount disbursed, utilization of cess, and a list of sugar mills that received assistance between 2020 and 2023.
**Key Points / Main Content**
* **SDF Scheme Details:**
* Under the SDF Act, 1982, loans were provided for modernization, cane development, bagasse-based cogeneration power projects, and ethanol/ZLD plants.
* A total of ₹9,005 crores was disbursed to sugar mills under the scheme.
* The scheme closed on September 21, 2021, but pending SDF loan cases with prior administrative approval were still considered.
* **Financial Information:**
* A sugar cess amounting to ₹12,834 crore was collected up to June 30, 2017, when the cess was abolished.
* ₹10,196 crore was transferred to the SDF and utilized until March 31, 2018, for various schemes under the SDF Act, 1982.
* The balance of the cess account was transferred to the Consolidated Fund of India.
* Expenditure under the Scheme was met through budgetary provision starting from 2018-19.
* **Sugar Mill Assistance Details:**
* During 2020-21, ₹1,44,53,01,000 was disbursed to various sugar mills.
* During 2021-22, ₹1,21,10,00,000 was disbursed to various sugar mills.
* During 2022-23, ₹41,02,33,100 was disbursed to various sugar mills.
* No financial assistance was provided in the years 2023-24 and 2024-25.
**Impact Analysis**
**Sugar Mills**
* **Impact:** Benefitted from financial assistance and loans for various development and modernization projects until September 21, 2021
* **Action Required:** Sugar mills who were issued an administrative approval before the closing of the scheme could have received loan disbursements.
**Ministry of Consumer Affairs, Food & Public Distribution**
* **Impact:** The ministry was responsible for administering the SDF scheme and ensuring compliance with the SDF Act, 1982, and related rules, until the scheme's closure on September 21, 2021. The ministry is required to respond to parliamentary questions.
* **Action Required:** No action required.
**Central Government**
* **Impact:** The Central Government abolished sugar cess and integrated the SDF expenditure into the normal budgetary process.
* **Action Required:** No action required.
Key Entities Referenced
Sugar Development Fund (SDF): A scheme to provide financial assistance and loans to sugar mills.
Sugar Development Fund Act, 1982: The act under which loans were given to sugar mills.
Ministry of Consumer Affairs, Food & Public Distribution: The ministry responsible for administering the SDF scheme.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 611
TO BE ANSWERED ON 3RD DECEMBER, 2025
LOANS TO SUGAR MILLS UNDER SDF
611. SHRI RAJESHNARANBHAI CHUDASAMA:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be
pleased to state:
(a) whether there is a scheme to provide financial assistance and loans to sugar mills under
Sugar Development Fund (SDF);
(b) if so, the number of sugar mills given financial assistance along with the amount provided,
mill-wise;
(c) the present status of the SDF scheme;
(d) the amount ofcess collected from sugar mills along with the actual amount utilised; and
(e) the details of the amount left unused along with the fate of balance amount under SDF
scheme?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRiBUTION
(SHRIM ATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a) to (c) : Under Sugar Development Fund Act, 1982, loans were given to sugar mills, inter-alia,
for Modernisation Cum Expansion of sugar mill, Cane Development, Bagasse-Based
Cogeneration power projects, production of Anhydrous Alcohol or Ethanol/Zero Liquid
Discharge (ZLD) plant.
Under the said Scheme, an amount of ? 9,005 crores was disbursed to the sugar mills as
SDF Loans as per details given below :
Amount Disbursed
S. No. 1Type of SDF Loan
in crores)
odernization ? 3,375
ane Development { 1,074
o-generation ( 3,369
Ethanol/ZLD ? 1,187
Sugar Mill wise data ofdisbursement during the last five years is annexed.-2-
The scheme for providing financial assistance to the sugar mills has been closed with
effect from 21.09.2021. However, the SDF loan cases where Administrative Approval had already
been issued before closure were considered in the Department. At present, no Administrative
Approval is pending for loan disbursement.
(d) & (e): A sugar cess amounting to {12,834 crore was collected upto 30.06.2017 (cess was
abolished by Central Government on introduction of Central Goods and Services Act, 2017). Out
of this, till 31.03.2018, an amount of ?10,196 crore was transferred to the Sugar Development
Fund and was utilised for implementation of various schemes under SDF Act, 1982 and SDF
Rules. 1983. The balance in cess account was transferred to the Consolidated Fund of India. Since
2018-19, the expenditure under the Scheme was met through normal budgetary provision.
SeqeSc k]cScANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (a), (b) & (c) OF THE UNSTA.RRED
QUESTION NO. 611 DUE FOR ANSWER ON 03.12.2025 IN THE LOK SABHA REGARDING
LOANS TO SUGAR MILLS UNDER SDF
Detail of Sugar Mills that were given financial assistance during the year 2020-21
Amount
S.No.
Name of the Sugar Mill I Type of Loan Disbursed
1. M/s The Bhogpur Co-op. Sugar Mills Ltd.,
Modernisation ( 3,75,72,000
Bhogpur- 144201, Distt- Jalandhar, Punjab
2. M/s Shri Sai Priya Sugars Limited, Hippargi-
Mygur, Vishal Nagar, Hipparagi-Alabal
Ethanol/ZLD ? 25,00,00,000
Road, Tq.-Jamkhandi, Dist. Bagalkot-5873 1 1,
Karnataka
3. M/s MRN Cane Power (India) Ltd., at
Kallapur (SK) Khanpur -547155 Tq- Badami, Co-generation ? 21,49,08,000
Distt- BagalKot, Karnataka
4. a
Village, Hoovina Hadagali Taluka, Bellary Co-generation ( 7,11,17,000
Distt., Karnataka
5. M/s Bhalkeshwar Sugars Ltd., Basaveshwar
Chowk, near I.B. Bhalki-585328, Tq. Bhalki, Modernisation ? 6,24,28,000
Dist. Bidar, Karnataka
6. M/s Shri Sai Priya Sugars Limited, Hippargi-
Mygur, Vishal Nagar, Hipparagi-Alabal Ethanol/ZLD ? 4,06,08,300
Road, Tq.-Jamkhandi, Dist. Bagalkot-5873 1 1,
Karnataka
7. M/s Bhogpur Co-op Sugar Mills Ltd.,
Co-generation ? 4,57,10,000
BhogDur, Jalandhar, Puni ab
8. M/s Bhogpur Co-op Sugar Mills Ltd.,
Co-generation { 57,36,000
Bhogpur, Jalandhar, Punjab
9. M/s Dwarkadhish Sakhar Karkhana Ltd., At
.
Sheware, Tal.-Satana, Dist Nashik, Ethanol/ZLD ? 9,00,00,000
Maharashtra
10. M/s Sadashivrao Mandlik Kagal Taluka SSK
Ltd., Sadashivnagar, Hamidwada-Kaulage, Ethanol/ZLD ? 9,00,30,000
Tal.-Kagal, Dist.-Kolhapur, Maharashtra
11. M/s The Bhogpur Co-op. Sugar Mills Ltd.,
Modernisation ? 8,81,21,000
BhogDur- 144201, Distt- Jalandhar, Punjab
12. M/s Nandi Sahakari Sakkare Karkhana
Niyamit, Krishnanagar, Post Hosur, Teh. & Co-generation ( 18,26,13,000
Distt. Niiapur, Karnataka
13. M/s Nanca
Niyamit, Krishnanagar, Post Hosur, Teh. & Co-generation { 9,58,19,500
Dist. Nijapur, Karnataka
14. M/s Harsha Sugar Ltd. at Village-Savadatti,
Co-generation ( 9,16,80,500
Taluk- Savadatti, Dist- Belgum, Karnataka
15. a
Co-generation ( 1,80,32,700
Taluk- Savadatti, Dist- Belgum, Karnataka
16. M/s Dwarkadhish Sakhar Karkhana Ltd., at
.
Sheware, Tal.-Satana, Dist Nashik, Ethanol/Z:LD ? 2.93.61.700
MaharashtraAmount
Name of the Sugar Mill Type of Loan
Disbursed
M/s Bhalkeshwar Sugars Ltd., Basaveshwar
Chowk, near I.B. Bhalki-585328, Tq. Bhalki, I Modernisation ? 1,18,79,000
Dist. Bidar, Karnataka
M/s Dwarkadhish Sakhar Karkhana Ltd., At
She ware Tal.-Satana Dist Nashik Ethanol/ZLD ? 1,96,84,300
Maharashtra
Total
? 1,44,53,01,000Detail of Sugar Mills that were given financial assistance during the year 2021-22
S.No. Name of the Sugar Mill Type of Loan Amount Disbursed
1. M/s Sadashirao Mandlik Ka
Ltd., Sadashivnagar, Hamidwada-Kaulage,
Ethanol/ ZLD ? 9,00,29,600
Tal.-Kagal, Dist. Kolhapur, Maharashtra -
416235
2. M/s Bannari Amman Sugars Ltd, Alaganchi
Village, Nanjangud Taluk, Dist. Mysore, Ethanol/ ZLD ? 14,99,70,400
Karnataka
3. M/s Bannari Amman Sugars Ltd, Alaganchi
village, Nanjangud Taluk, Dist. Mysore, Ethanol/ ZLD ( 3 1,01,79,600
Karnataka
4. M/s Nandi Sahakari Sakkare Karkhana
Niyamit, Krishnanagar, Post Hosur, Teh. & Co-generation * ? 13,98,20,400
Dist. Nijapur, Karnataka
5. M/s Nandi Sahakari Sakkare Karkhana
Niyamit, Krishnanagar, Post Hosur, Teh. & Co-generation * ? 13,86,12,100
Dist. Nijapur, Karnataka
6. M/s Shree Narmada Khand Udyog Sahakari
Mandli ltd., Dharikheda, P.O. Timbi, Ta. Ethanol/ ZLD # ? 15,90,08,000
Raj pipla (Nandod), Dist. Narmada, Gujarat
7. M/s Karmyogi Ankushrao Tope Samarth
Sahakari Sakhar Karkhana Ltd., Post
Ethanol/ ZLD $ { 22,33,79,900
Ankushnagar, Taluka Amt)ad, Dist. Jalna,
Maharashtra
Total
? 1,21,10,00,000
+ The Administrative Approval has been issued before 21.09.2021 before the closure of the
SDF loan schemesDetail of Sugar Mills that were given financial assistance during the year 2022-23
Name of the Sugar Mill Type of Loan Amount Disbursed
M/s. DCM Shriram Limited, Hariawan.
Co-generation # ? 36,31,37,000
Hardoi, U.P
M/s. Khatav Man Taluka Agro Processing
Co-generation # ? 4,25,00,000
Pvt. Ltd., Satara, Maharashtra
M/s. Karmyogi Ankushrao Samarth SSK Ltd,
Ethanol # ? 45,96,100
Jalana, Maharashtra
Total { 41,02,33,100
8 The Administrative Approval has been issued before 21.09.2021 i.e. before the closure of the
SDF loan schemesDetail of Sugar Mills that were given financial assistance during the year 2023-24 and 2024-
NIL