THE SUGAR DEVELOPMENT FUND ACT, 1982 
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ARRANGEMENT OF SECTIONS 
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SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 
3.  Sugar Development Fund. 
4.  Application of Fund. 
5.  Applications for loans or grants. 
6.  Committee. 
7.  Annual report of activities financed under the Act. 
8.  Power to call for reports and returns. 
9.  Power to make rules. 

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THE SUGAR DEVELOPMENT FUND ACT, 1982 

ACT NO. 4 OF 1982 

[19th March, 1982.] 
An Act  to  provide for the financing of activities for development  of sugar  industry  and for 

matters connected therewith or incidental thereto. 

BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows:— 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Sugar  Development 

Fund Act, 1982. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint.  

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Committee” means the Committee constituted under section 6; 

(b) “Fund” means the Sugar Development Fund formed under section 3; 

(c) “prescribed” means prescribed by rules made under this Act; 

(d) all other words and expressions used in this Act and not defined, but defined in the Sugar Cess 

Act, 1982 (3 of 1982), shall have the meanings respectively assigned to them in that Act.  

3. Sugar Development Fund.—(1) There shall be formed a fund to be called the Sugar Development 

Fund. 

(2) An amount equivalent to the proceeds of the duty of excise levied and collected under the Sugar 
Cess Act, 1982(3 of 1982), reduced by the cost of collection as determined by the Central Government, 
together with any moneys  received by the Central Government for the purposes of this Act, shall, after 
due appropriation made by Parliament by law, be credited to the Fund. 

(3)  The  Fund  shall  consist  of  the  amounts  credited  under  sub-section  (2)  and  any  income  from 

investment of such amounts.  

4. Application of Fund.—(1) The Fund shall be applied by the Central Government,— 

(a) for making loans for facilitating the rehabilitation and modernisation of any sugar factory or 
any unit thereof or the undertaking of any scheme for development of sugarcane in the area in which 
any sugar factory is situated; 

2[(aa) for making loans to any sugar factory or any unit thereof for bagasse-based co-generation 

power projects with a view to improving their viability; 

(aaa)  for  making  loans  to  any  sugar  factory  or  any  unit  thereof  for  production  of  anhydrous 

alcohol  or ethanol from alcohol with a view to improving their viability;] 

(b)  for  making  grants  for  the  purpose  of  any  research  project  aimed  at  development  of  sugar 

industry;  

3[(bb) for defraying expenditure for the purpose of building up and maintenance of buffer stocks 

of sugar with a view to establishing price of sugar;] 

2[(bbb) for defraying expenditure on internal transport and freight charge to the sugar factories on 

export shipments of sugar with a view to promoting its export;] 

1.  1st  June,  1982,  vide  notification  No.  G.S.R.  436(E),  dated  29th  May,  1982,  see  Gazette  of  India,  Extraordinary,  Part  II,              

sec. 3(i). 

2. Ins.by Act 30 of 2002, s. 2 (w.e.f. 21-6-2002).. 
3. Ins. by Act 64 of 1982, s. 2 (w.e.f.12-11-1982). 

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1[(bbbb)  for  defraying  expenditure  for  the  purpose  of  financial  assistance  to  sugar  factories 
towards interest on  loans  given  in terms  of  any  scheme  approved  by  the  Central  Government from 
time to time;] 

(c) for defraying any other expenditure for the purposes of this Act. 

(2)  The  manner  in  which  any  loans  or  grants  may  be  made  under  this  section  and  the  terms  and 

conditions subject to which such loans or grants may be made shall be such as may be prescribed. 

5.  Applications for  loans or  grants.—Every  application  for  loan  or  grant  under  section  4 shall  be 

made to the Committee in such manner and in such form as may be prescribed.  

6.  Committee.—(1)  For  the  purpose  of  securing  speedy  consideration  and  disposal  of  applications 
received under section 5 and for considering any problems arising in the course of the administration of 
this Act, the Central Government may constitute a committee of officers of that Government. 

(2)  The  composition  of  the  Committee  and  the  procedure  to  be  followed  by  the  Committee  in  the 

discharge of its functions under this Act shall be such as may be prescribed.  

7. Annual report of activities financed under the Act.—The Central Government shall, as soon as 
may be, after the end of each financial year, cause to be published in the Official Gazette, a report giving 
an account of the activities financed under this Act during the financial year, together with a statement of 
accounts.  

8. Power to call for reports and returns.—The Central Government may require an occupier of a 
sugar factory to furnish, for the purposes of this Act, such statistical and other information, in such form 
and within such period as may be prescribed.  

9. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the provisions of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for,— 

(a) the manner in which any loans or grants may be made and the terms and conditions subject to 

which such loans or grants may be made under section 4; 

(b) the manner and form in which applications may be made under section 5; 

(c) the  composition  of the Committee  under section  6  and the  procedure  to  be followed  by  the 

Committee in the discharge of its functions under this Act; 

(d)  the  form  in  which  and  the  period  within  which  statistical  and  other  information  may  be 

furnished under section 8; 

(e) any other matter which is required to be or may be prescribed. 

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions,  and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule.  

1. Ins. by Act 4 of 2008, s. 2 (w.e.f. 5-2-2008). 

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