Govt approves Rs 2,790-cr interest subvention on loans to sugar mills; NHPC to take over Teesta hydel project in Sikkim

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved Rs 2,790-crore interest subvention for extending loans by banks to sugar mills, Finance Minister Arun Jaitley said.

This is in addition to Rs 1,332 crore already approved by the CCEA in June 2018.

The interest subvention is for extending loans of Rs 12,900 crore by banks to sugar mills under the scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity, he said.

 Govt approves Rs 2,790-cr interest subvention on loans to sugar mills; NHPC to take over Teesta hydel project in Sikkim

Representational image. Reuters.

The Cabinet also approved state-owned NHPC taking over debt-laden Lanco's 500 MW Teesta hydro-electric power project in Sikkim, Jaitley said.

He said the NHPC has also been allowed to spend Rs 574.04 crore to complete balance work at the project. The project would generate 2,400 million units.

Teesta Stage-VI hydro-electric project is a run of river (RoR) scheme in Sirwani Village of Sikkim to utilise the power potential of Teesta river basin in cascade manner.

The project shall help in meeting peaking demand of energy, balancing and ramping requirement of the grid.

The CCEA has approved the construction of a third railway line between Narayangarh in West Bengal and Bhadrak in Odisha.

Jaitley said the new 155-km railway line will ease congestion on the route.

"The third line will help generate additional optimum capacity to cope with the existing as well as additional traffic," he said.

According to government estimates, the project would cost Rs 1,866.31 crore and would be completed by 2023-24. It is expected to generate direct employment for around 37.2 lakh man days.

Updated Date: Mar 07, 2019 14:08:34 IST