GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Agricultural Marketing – Loans to A.P.Markfed Rupees 1.00 Crores for Cotton Procurement operations – Sanctioned –Orders – Issued .

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AGRICULTURE AND COOPERATION(MKTG.I) DEPARTMENT

G.O.Ms.No. 23                                         Dated: 31.01.2000

Read thefollowing :

1.       From the Managing Director, AP Markfed Lr.Rc.No.CP/4560/99, dated 02.11.99.

2.       From the Managing Director, AP Markfed Lr.Rc.No.CP.4560/99, dated 05.11.99.

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O R D E R :

               The Managing Director, A.P. Markfed in his letter read above has informed that theA.P.MARKFED has been directed by the  Governmentto procure cotton along with the Cotton Corporation of India.  He has also informed that inthe meeting held on 04.11.99 the Government has instructed the A.P.MARKFED   to purchase cotton and to release Rs.1.00 croreto A.P.MARKFED for procurement of Cotton.

2.               Government after careful examination hereby accord sanction for incurringexpenditure not exceeding Rs.1.00 Crore (Rupees one crore only) as loan to Andhra PradeshState Cooperative Marketing Federation Limited (APMARKFED) subject to the followingconditions.

ANNEXURE

(i) The amount shall be used strictly for procurement of cotton andoperation shall be     carriedout with due care and efficiency to keep the losses to the minimum, if any:

(ii) The interest chargeable on the above loan shall at the rate of 12.5per cent per annum.

3.             Theexpenditure sanctioned in para (20 above shall be debited to “6408-Loans for FoodStorage and Ware housing : MH.195-Loans to Cooperation : SH(15)- Short Term loans toA.P.MARKFED for procurement of cotton (to be opened)” and shall be met in relaxationof treasury control orders and quarterly regulation orders pending provision of funds byobtaining supplementary grants during 1999-2000.

4.             TheAccount Officer, Finance and Planning (FW.BG.II) Department shall draw and disburse theamount sanctioned in para (2) at pre-page to the A.P.MARKFED, through cheque in oneinstallment.

5.             TheDirector of Marketing, Andhra Pradesh, Hyderabad is requested to take action for obtainingsupplementary grant at the appropriate time during 1999-2000 to cover the actualadditional expenditure incurred.

6.             The termsand conditions of the loan shall be as per the annexure appended to this order.

7.             This orderissues with the concurrence of Finance and Planning (FW.EBS.XIII) Department, vide theirNo.5358/PFS/99, dated 08.11.99.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRAPRADESH)

           LALIT MATHUR,

PRINCIPALSECRETARY TO GOVERNMENT.

To

The ManagingDirector, A.P.MARKFED, Hyderabad.