Sugar Development Fund (SDF) was established in the year 1982, through an act of Parliament. It is being utilized presently to grant loans to the sugar mills for facilitating the rehabilitation and modernization/ Bagasse based co-generation power projects/ production of anhydrous alcohol or ethanol from alcohol/ conversion of existing ethanol plant into Zero Liquid Discharge (ZLD) plant and development of Sugar cane. The loans are provided at a concessional rate of 2% below the prevailing bank rate.
The schemes of financial assistance as loans to sugar factories under the Sugar Development Fund Act, 1982 have been closed forthwith. However, the SDF loan cases where Administrative Approval has been issued are being considered by the Department.