The Sugar Development Fund (SDF)
Under the Sugar Cess Act, 1982, cess has been collected at various rates notified from time to time on all the sugar produced and sold by any sugar factory within India. The present rate of cess is Rs.124/- per quintal w.e.f. 01.02.2016. The Sugar Development
Fund Act, 1982, provides that an amount equivalent to the proceeds of the duty of excise levied and collected under the Sugar Cess Act, 1982 reduced by the cost of collection as determined by the Central Government, together with any money received by the
Central Government for purpose of this Act, shall after due appropriation made will be credited to the Sugar Development Fund (SDF).
The Sugar Development Fund Act, 1982 provides for the following purposes for which the fund shall be applied:
(i) Making loans for facilitating the rehabilitation and modernization of any sugar factory or any unit thereof, including to a potentially viable sugar undertaking.
(ii) Making loans for undertaking any scheme for development of sugarcane in the area in which any sugar factory is situated, including to a potentially viable sugar undertaking.
(iii) Making grants for the purpose of carrying out any research project aimed at the promotion and development of any aspect of Sugar Industry.
(iv) Defraying expenditure to a sugar factory on internal transport and freight charges on export shipment of sugar with a view to promoting its export.
(v) Making loans to any sugar factory having an installed capacity of 2500 TCD or higher to implement a project of bagasse based cogeneration of power.
(vi) Making loans to any sugar factory having an installed capacity of 2500 TCD or higher for production of anhydrous alcohol or ethanol from alcohol or molasses with a view to improving its viability.
(vii) Defraying expenditure to a sugar factory for the purpose of building up and maintenance of buffer stock with a view to stabilizing price of sugar.
(viii) Defraying expenditure for the purpose of financial assistance to sugar factories towards interest on loans given in terms of any scheme approved by the Central Government from time to time.
(ix) Defraying any other expenditure for the purpose of the Act.
(x) Making loans to any sugar factory for conversion of existing ethanol plant into Zero Liquid Discharge plant.