Thiruvananthapuram: Financially stressed cashew businesses in Kerala are set to benefit from the interest waiver on loans that have turned Non-Performing Assets (NPAs). The government will have to write off about Rs 500 crore as part of the relief.
The interest on loans upto Rs 10 crore taken by businesses would be written off as part of the one-time settlement under a revival package announced by the state government for the cashew sector. The loan accounts which turned Non-Performing Assets till March 31 will be given these relaxations.
Businesspersons who took Rs 2 crore loan can settle their liabilities by remitting 50 percent of the principal amount. Those who availed loans worth Rs 2 to 10 crore should remit 60 percent amount.
The banks will be given time up to February 28 to submit their directions regarding the repayment as per the formula. By this period the first installment of 10 percent should be remitted.
After accepting the direction, the repayment of loan can be done within a year.The industrialists who had run associated businesses along with cashew factory also have been brought within the purview of the assistance.
The state government had started the process of formulating a package for the revival of the private cashew industry in 2019. A committee was constituted for one-time settlement comprising State Level Bankers Committee, government representative and representatives of the industrialists.
The decision on one-time settlement was taken finally after the discussions led by Industries Minister P Rajeev and Finance Minister K N Balagopal.