Cabinet approves policy for sugar industry, including Rs 5,538-cr package

New Delhi, September 26

The Union Cabinet on Wednesday approved a comprehensive policy for the sugar industry, including a Rs 5,538 crore package, that seeks to offset the cost of cane and provide transport subsidy for sugar export to enable the industry improve its liquidity and clear arrears of cane growers.

Addressing the media here, Union Finance Minister Arun Jaitley said that the policy's objective is to deal with the surplus domestic stock of sugar due to higher production in the coming season.

"One of the points (of the policy) talks about providing assistance to sugar mills by defraying expenditure towards internal transport, freight handling and other charges to facilitate export during the sugar season (2018-19)," he said.

"Another one is to provide assistance to sugar mills at the rate of Rs 13.88 per quintal of cane crushed during the 2018-19 season to offset the cost of cane itself." The transport subsidy will be Rs 1,000 per tonne of sugar for mills located within 100 km from ports, Rs 2,500 per tonne for mills located beyond 100 km from the ports in the coastal states and Rs 3,000 per tonnes for mills located in other than coastal states or actual expenditure, whichever is lower.   

Converting GSTN to govt entity

The Cabinet Wednesday cleared a proposal to convert GST Network (GSTN) into a government-owned company.

Jaitley said that 50 per cent stake would be owned by the Centre and the remaining by the states on pro-rata basis in the new structure.

Currently, the Centre and states together hold 49 per cent stake in the GST Network, the company that provides IT backbone to the new indirect tax regime. The remaining 51 per cent is held by five private financial institutions—HDFC Ltd, HDFC Bank Ltd, ICICI Bank Ltd, NSE Strategic Investment Co and LIC Housing Finance Ltd.

The proposal to convert GSTN into 100 per cent government-owned company was earlier approved by the all-powerful GST Council.

The GSTN was incorporated as a private limited company on March 28, 2013 under the UPA government. It is a Section 8 company under the new Companies Act and hence is a not-for-profit entity. Agencies