According to the HT reports reversing its earlier decision the Maharashtra government will now provide a bank guarantee for loans taken from the Maharashtra State Central Cooperative Bank by ailing sugar factories controlled by political leaders.
The loans of ?1,100 crore will be given to 13 sugar factories managed by politicians from ruling and opposition parties. It is worth mentioning the state government has already paid Rs 1,220 crore in the last five years towards bank guarantees for defaulter factories.
According to official sources, he properties of the directors will be attached by the government if the factories fail to repay the loans.