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 After several rounds of discussions between Kerala government, banking officials and the cashew industry, a onetime settlement package has been announced which will provide succour to the tune of Rs 500 crores, a state minister said.

The one-time money spinning cashew industry in Kerala has been in shambles due to high cost of production, unavailability of raw nuts, and not to mention the Covid pandemic and for long they have been seeking assistance from the Pinarayi-Vijayan led Left government since 2016.

The first intervention by the Vijayan government came in 2019 and since then there have been regular meetings with all concerned.

State Industries Minister P. Rajiv on Thursday said this scheme would benefit those in the cashew business who have availed a loan of up to Rs 10 crore.

According to the new package, interest will be waived of on all loans up to Rs 10 crores taken by the cashew industry.

Besides this those who have taken loans for sums up to Rs 2 crore can close their account by paying 50 per cent of the capital.

And for those who have availed loans from Rs 2 to Rs 10 crore, they have to pay 60 per cent and the accounts can be closed.

Consequent to this huge one time settlement, the State Level Bankers Committee officials points out that it will provide relief to numerous people in the cashew business to the tune of Rs 500 crore.

This scheme will be applicable to all those accounts which have turned NPA as on March 31, 2020.