July 06, 2019
Processors
complain that banks refuse to restructure loans
Images by IT
The
government has taken all steps to implement the revival package for private
cashew processors within July 31, Minister J. Mercykutty Amma has said.
The
decision was taken at a meeting here on Saturday attended by State Level
Bankers’ Committee (SLBC) officials and factory owners in Thiruvananthapuram.
Bank’s refusal
The
meeting was convened after the processors said that some banks were refusing to
restructure their loans as part of the package.
South
Indian Bank, Federal Bank, and Catholic Syrian Bank were expected to
restructure the loans of 84 factories.
Also,
seven factories handed over to asset reconstruction companies for auction would
be returned to the owners.
Interest-free
loans
The
State government would also provide interest-free loans for private processors
for one year.
The
Minister observed that the cashew sector was in a deep crisis when the Left
Democratic Front (LDF) government came into power.
“Kerala
State Cashew Development Corporation (KSCDC) and Capex factories along with the
majorities of factories in the private sector were not functioning. The
government took immediate steps to protect the industry and the employment of
lakhs of labourers. The KSCDC and Capex factories have been functioning since
August 2016,” she said.
The
Minister said that over 5,000 labourers were newly recruited in various
government factories of late and half of the private factories were functional
now.
Centre’s help
“The
State government has repeatedly approached the Centre for a package to revive
the industry,” the Minister said.
Reporters
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