ifci limited new delhi - sdf presentation.pdfdr. emandi sankara rao md & ceo ifci ltd. is the...
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Sugar Development Fund
IFCI LimitedNew Delhi
Dated: 16/08/2018
Dr. Emandi Sankara Rao
MD & CEO
IFCI Ltd. is the Nodal Agency for channelizing theSugar development Fund (SDF) of the Governmentof India since inception of the Fund in 1986.
IFCI monitors the SDF loans sanctioned to privatesugar factories for modernization-cum-expansion,setting-up of bagasse based cogeneration powerprojects, manufacture of ethanol fromalcohol/molasses, zero liquid discharge (ZLD)distillery projects, cane development schemes.
As a Nodal agency of GOI, IFCI is primarily responsiblefor examination/execution of loan proposals andsecurity documents, recommendation to GOI forrelease of funds, undertaking site visits for verificationof physical and financial progress, verification ofutilization of loan monies released by SDF, maintainingloan accounts of borrowers, recovery of SDF dues,taking legal actions against defaulters, etc.
The Sugar Development Fund Act, 1982 provides forthe following purposes for which the fund shall beapplied:(i) Making loans for facilitating the rehabilitation andmodernization of any sugar factory or any unit thereof,including to a potentially viable sugar undertaking.(ii) Making loans for undertaking any scheme fordevelopment of sugarcane in the area in which anysugar factory is situated, including to a potentiallyviable sugar undertaking.(iii) Making grants for the purpose of carrying out anyresearch project aimed at the promotion anddevelopment of any aspect of Sugar Industry.(iv) Defraying expenditure to a sugar factory on internaltransport and freight charges on export shipment ofsugar with a view to promoting its export.
Cont……..
(v) Making loans to any sugar factory having an installedcapacity of 2500 TCD or higher to implement a project ofbagasse based cogeneration of power.(vi) Making loans to any sugar factory having an installedcapacity of 2500 TCD or higher for production ofanhydrous alcohol or ethanol from alcohol or molasseswith a view to improving its viability.(vii) Defraying expenditure to a sugar factory for thepurpose of building up and maintenance of buffer stockwith a view to stabilizing price of sugar.(viii) Defraying expenditure for the purpose of financialassistance to sugar factories towards interest on loansgiven in terms of any scheme approved by the CentralGovernment from time to time.(ix) Defraying any other expenditure for the purpose ofthe Act.(x) Making loans to any sugar factory for conversion ofexisting ethanol plant into Zero Liquid Discharge plant.
Total Sanction : Rs. 6670.00 croreTotal Disbursement : Rs. 5409.78 croreAgency Commission : Rs. 218.67 crore
Current Status
Total Exposure : Rs. 2670.15 crore Number of Cases monitored : 131Number of Accounts monitored : 331
Cumulative Figures
2
5
9
22
21
14
19
7 8
5
9
7
14 1
6
6
4
15
3
11 12
8
18
40
25
41
49
24
52
19
8
12
17
11
0
10
20
30
40
50
60
19
85
-86
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
Year wise number of cases Sanctioned
No
. of
Cas
es
Year wise Amount Sanctioned
Rs.
in C
rore
1.7
9
4.4
6
6.2
4 46
.24
49
.70
40
.97 9
6.2
6
24
.93
37
.17
27
.82
42
.49
54
.44 89
.03
15
4.1
9
67
.49
42
.57
13
5.6
6
34
.54
16
4.9
6
14
2.3
9
73
.97
37
4.2
5
75
9.8
7
50
2.6
3
82
9.8
8
29
7.9
7
22
7.4
8
51
4.3
1
47
5.0
0
28
5.0
0
31
5.0
0
51
7.0
0
23
4.3
2
0
100
200
300
400
500
600
700
800
900
1985
-86
1986
-87
1987
-88
1988
-89
1989
-90
1990
-91
1991
-92
1992
-93
1993
-94
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
2017
-18
Year wise Disbursement
1.7
9
4.4
6
6.2
4
46
.24
49
.70
40
.97
89
.09
24
.39
37
.17
26
.93
42
.49
54
.44 82
.69
15
1.2
6
67
.49
42
.57
13
2.5
8
34
.54
16
3.5
6
12
6.4
9
71
.72
34
2.8
1
26
8.1
8
44
1.9
4
52
1.3
1
54
3.0
7
34
0.4
9
35
3.0
5
41
8.0
0
27
0.0
0
12
1.0
0
11
2.0
0
38
1.1
2
0
100
200
300
400
500
600
19
85
-86
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
Rs.
in C
rore
Agency Commission Structure
• The commission for actual recovery is 2%• The Commission for Outstanding Amount is as detailed
under:
Commission (%) of
Outstanding Loans
Commission is applicable for
following period
Commission(%) applicable for
remaining period
Modernization 0.5% 3 Yr 0.25%
Cogeneration 0.5% 2 Yr 0.25%
Ethanol 0.5% 1 Yr 0.25%
Cane Development
0.20% 2 Yr 0.10%
No commission are paid by SDF/GOI for default cases (i.e.) cases where company is in default for 2 or more due dates
Year wise Commission earned by IFCI
0.0
1
0.0
3
0.0
8
0.3
3
0.5
4
0.8
4
1.2
2
1.3
8
1.6
5
2.0
6
2.2
6
2.6
1
3.0
2 3.7
5
4.2
4
4.6
9
5.3
3
5.6
3
5.9
7 6.7
5
7.0
1
11
.28
8.1
7
11
.40
14
.59
16
.91
17
.56 1
9.3
3
18
.23
16
.04
15
.50
10
.25
0
5
10
15
20
25
19
86
-87
19
87
-88
19
88
-89
19
89
-90
19
90
-91
19
91
-92
19
92
-93
19
93
-94
19
94
-95
19
95
-96
19
96
-97
19
97
-98
19
98
-99
19
99
-00
20
00
-01
20
01
-02
20
02
-03
20
03
-04
20
04
-05
20
05
-06
20
06
-07
20
07
-08
20
08
-09
20
09
-10
20
10
-11
20
11
-12
20
12
-13
20
13
-14
20
14
-15
20
15
-16
20
16
-17
20
17
-18
Rs.
in C
rore
Total Outstanding as on 31/03/2018 : Rs.2449.57 CroreR
s. in
Cro
re
1,276.33
793.75
216.37 163.12
0
200
400
600
800
1,000
1,200
1,40052.104%
32.404%
8.833% 6.659%
0%
10%
20%
30%
40%
50%
60%
Total Outstanding as on 30/06/2018 : Rs.2670.15 CroreR
S. In
Cro
re
1334.40
911.58
264.55158.63
0
200
400
600
800
1000
1200
140049.993%
34.152%
9.911%5.943%
0%
10%
20%
30%
40%
50%
60%
Outstanding Position as on 30/06/2018
S.No Type No. of casesNo. of
Actt.
Principal
OSInterest OS Total OS % of OS
1 Regular Cases 53 192 1014.99 125.86 1140.85 42.73%
2 Default Cases 78 139 904.43 624.87 1529.30 57.27%
Total 131 331 1919.42 750.73 2670.15 100.00%
Default Position as on 30/06/2018
S.No TypeNo. of
cases
No. of
Actt.
Principal
Default
Interest
Default
Funded
Interest
Total
Default
% of
Default
1 Single Instalment Default 15 23 23.27 4.48 1.19 28.94 2.41%
2 Legal Action Taken 24 39 190.38 298.48 12.41 501.28 41.74%
3 Legal Action under initiation 6 14 55.81 67.95 1.10 124.86 10.40%
4
Approval to be obtained for
Legal Action 20 40 193.75 187.62 3.99 385.36 32.09%
5 Others (Close Monitoring) 13 23 129.87 26.76 3.98 160.61 13.37%
Total 78 139 593.08 585.29 22.67 1201.04 100.00%
Rs. In Cr.
Rs. In Cr.
PeriodNo. of Regular
Accounts
No. of
Default
Accounts
Total No.
of
Accounts
Default
Amount
in crore
Security
Prior to 30/06/2013 91 112 203 1089.32Loans are secured by
way of second charge
After 30/06/2013 101 27 128 111.72
Loans are mainly
secured by way of First
pari-passu charge
Total 192 139 331 1201.04
An over view of the accounts
• Cyclical Industry• Low Yield of Sugarcane• Old and obsolete machinery• Low rate of recovery• Low per capita consumption• Short crushing season• Fluctuating Production Trends• Mismatch between cost of production
and sale price
Challenges for Sugar Factory
• No provision for One time Settlement ofdefault cases
• No Restructuring facility by way of anywavier
• DRT Process is time consuming and postissuance of RC, even if we go for sale,proceed will first go to 1st charge holderand residual, if any, will come for 2nd
Charge Holder.• Companies cannot be declared as wilful
defaulter under SDF as RBI is notagreeable
Limitations in SDF Rules
Provision in SDF rules for OTS andresolution through NCLT which mayentail sacrifice, if necessitate. (IFCI is inthe process of submitting a proposal)
Suggestions to SDF/GOI
Contact Details:Jagdish Garwal Manoranjan SarmaDeputy General Manager ManagerSugar Development Fund Sugar Development FundEmail : [email protected] Email : [email protected] : 9599193795 Mobile : 9990725724