THE Indian government has agreed to Fiji's request for the Fiji Sugar Corporation (FSC) to draw down the remaining $5.45million from the line of credit fund initially established for the failed $86million mill upgrade program.
Yesterday, FSC executive chairman Abdul Khan, who recently returned to the country after negotiating the deal with the Indian government and Export Import Bank of India, also revealed that FSC would be given an opportunity to reuse payments previously made towards the initial loan.
As a result of the discussions, FSC will have access to approximately $15million, which Mr Khan said would be used to further improve sugar mills in the country and aid in the establishment of diversification projects.
Mr Khan was accompanied by Prime Minister and Minister for Sugar Commodore Voreqe Bainimarama.
"Under the existing credit facility of $US50.4 million ($F88.9m), the Indian government has agreed for us to draw down the remaining balance of $US3.1 million ($F5.4m) and also they will put in place a mechanism to re-draw the paid principal of $US5.4 million ($F9.5m)," he said.
During talks with the Indian government and sugar industry stakeholders, Mr Khan said a number of issues were raised including FSC's planned diversification projects.
"Our discussion went very well and we talked at length about our cogeneration project at Rarawai and the conversion of molasses to ethanol as well," he said.