Milk plants can pay dues in instalments

CHANDIGARH: In a major relief tomilk plant owners, the government has allowed them to pay outstanding interest on milk cess amounting to nearlyRs 1,268 crore through easy payment norms, including instalments.

Tribune News Service

Chandigarh, September 11

In a major relief tomilk plant owners, the government has allowed them to pay outstanding interest on milk cess amounting to nearlyRs 1,268 crore through easy payment norms, including instalments.

The decision will help milk plants meet their day-to-day working capital requirements andbuy more milk at abetter price, resulting in more prosperity to the dairy farmers.

Under the one-timesettlement scheme, defaulter milk plants will be permitted to pay pending principal amount of milk cess with 12 per cent simple interest.

Fifty per cent of the amount due shall bepaid by the companyconcerned within 60days and the balance within six months in sixequal instalments.

The scheme will be valid for 60 days from the date of announcement and payment of 50 per cent of the amount due within 60 days shall be construed as opting for the scheme.

A total of 23 milk plants are facing a financial crunch with banks refusing to give working capital in view of huge accumulated interest.

The balance milk cess is Rs 69.55 crore, of which Rs 38.05 crore is due from private plants and the rest from cooperative dairy plants and the National Dairy Research Institute.

Accumulated interest over the years on milk plants comes out to beRs 1,268.61 crore as on March 31. Milk cess was started in 2001.

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