(i) Introduced in Lok Sabha on March 11, 2008 (ii) Passed in Lok Sabha March 17, 2008 (iii) Passed in Rajya Sabha March 19, 2008 (iv) Assented/ Notified March 24, 2008
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(i) Introduced in Lok Sabha on March 11, 2008 (ii) Passed in Lok Sabha March 17, 2008 (iii) Passed in Rajya Sabha March 19, 2008 (iv) Assented/ Notified March 24, 2008
As Introduced As Passed by Lok Sabha Errata
The Sugar Development Fund Act, 1982 was enacted to provide for financing the activities for development of sugar industry and for matters connected therewith or incidential thereto. Section 4 (1) of the said Act provides the purposes for which the Sugar Development Fund shall be applied by the Central Government. The existing provisions do not specifically provide for payment of interest subvention from the Sugar Development Fund on loans given to sugar factories by banks or financial institutions. The Government has approved a scheme in December, 2007 to provide loans for sugarfactories from banks on the basis of excise duty paid and payable in 2006-07 and 2007-08 sugar seasons on production of sugar, with full interest subvention up to a maximum of twelve per cent. per annum, out of which five per cent. of the interest subvention would be provided through budgetary support from the Central Government and the rest seven per cent. from the Sugar Development Fund to utilise the loan proceeds for payment of sugarcane arrears of 2006-07 and sugarcane dues of 2007-08 sugar season (October-September). Claims for interest subvention were expected to be received from February, 2008 itself. Therefore, the provisions of the said section needed to be amended. The Sugar Cess Act, 1982 was enacted to provide for imposing cess on sugar for development of sugar industry and for matters connected therewith. Section 3(1) of the said Act as amended from time to time, provides for a cess on sugar at rates not exceeding rupees fifteen per quintal of sugar. The main source of funds for the Sugar Development Fund is by way of collection of cess on sugar. As per the estimates of the receipts into and disbursements from the Sugar Development Fund in the next about one year and two months, that is, upto March, 2009, there will not be sufficient funds in the Sugar Development Fund to meet the expected expenditure on account of interest subvention. In order to improve the accretion into the said Fund to meet the requirements of the various schemes approved by the Governmentand to ensure that sufficient fund is available for carrying out other purposes of the Act, there was immediate need to amend the said section to empower the Central Government to increase the cess from the present rate of rupees fifteen per quintal of sugar to rupees twenty-five per quintal and it will specify the increase in cess as per requirements of funds from time to time. Accordingly, the Sugar Development Fund (Amendment) Ordinance, 2008 was promulgated by the President on the 5th February, 2008. The Ordinance provides as follows:— (i) amendment of sub-section (1) of section 4 of the Sugar Development Fund Act, 1982 by inserting a new clause (bbbb) for 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; (ii) amendment of sub-section (1) of section 3 of the Sugar Cess Act, 1982 to increase the sugar cess from fifteen rupees to twenty-five rupees and to omit the proviso to the said sub-section as it becomes redundant. The Bill seeks to replace the aforesaid Ordinance.
