The Hindu Business Line : RBI announces relief to poultry units

To aid the poultry industry affected by the bird flu, the Reserve Bank of India (RBI) has asked banks to convert principal and interest due on working capital loans to term loans. This will be applicable to instalments and interest due for payment on or after February 1, 2006.

These converted loans may be recovered in instalments based on projected future inflows over a period up to three years with an initial moratorium of up to one year, according to the RBI.

The remaining portion of the term loan may be rescheduled with a moratorium period up to one year depending upon the cash-flow generating capacity of the unit. This rescheduling is to be completed by June 30, 2006.

The rescheduled and converted loans are to be treated as current dues. And the borrower will be eligible for fresh need-based finance, the RBI said in a notification.

These relief measures would be extended to all accounts of the poultry industry.

The Government has advised the RBI that it has proposed to grant a one-time interest subvention of 4 per cent per annum on the outstanding principal amount as on March 31, 2006, to all poultry units availing loans from banks.

More Stories on : Poultry | Farm credit | Co-operatives

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
DGCX volumes rise 167 pc in March

Rubber slips on weak demand

Low volume at Coonoor tea sales again

Gold, silver prices decline

Metal stocks shine on record high prices

Black gram demand-supply gap widening

Back-up showers stir up coffee growers' hopes

RBI announces relief to poultry units

Pepper, fresh herbs sales soar in UK

Pawar to hold meet on farmers' suicides