Sugar
ISSUES AND RECOMMENDATIONS
Complicated procedure for setting up new units and modernising existing sugar mills
New sugar units have to obtain initial approval from the State Government which has to be endorsed by the Ministry of Industry and the Ministry of Food in the Government of India
Due to the earlier licensing regime which had restriction on size of units, there is lack of scale economies in the sector
Introduce automatic approval for setting up of new units with the 15 km criterion
Remove restriction on expansion / consolidation of sugar mills subject to cane command area reservation
Use a part of the Sugar Development Fund for modernising existing units