Thiruvananthapuram: Financially troubled cashew companies in Kerala are said to benefit from the interest waiver on loans converted into non-performing assets (NPAs). The government will have to write off about 500 billion rupees as part of the relief.
Interest on corporate loans of up to Rs 10 billion would be written off as part of a one-off deal under a cashew sector revitalization package announced by the state government. The credit accounts that were converted to distressed assets by March 31st will receive these relaxations.
Business people who have taken out a loan of Rs 2 crore can settle their debts by transferring 50 percent of the principal. Those who have taken out Rs 2 to 10 crore worth of loans should transfer 60 percent of the amount.
The banks will be given until February 28th to submit their repayment instructions according to the formula. By this time, the first installment of 10 percent should be transferred.
Once the instruction has been accepted, the loan can be repaid within one year. The industrialists who had operated companies affiliated with the cashew factory were also included in the scope of the support.
In 2019, the state government began working on a package to revitalize the private cashew industry. For a one-off agreement, a committee was formed, which consists of the Landesbanken committee, government representatives and representatives of the industrialists.
The decision on the one-off settlement was finally made after the talks under the leadership of Industry Minister P. Rajeev and Finance Minister KN Balagopal.