At present, there is no provision in the existing SDF to give loans for power production from the by products of sugar industry, Mr Kumar told a press conference here.

"With the amended SDF we will give loan on easy repayments to encourage power generation from sugarcane byproducts," he said adding it is possible to generate 4,000 mw electricity from bagasse.

Since the the Centre is planning to increase the sugar production and at the same time bring down its price to compete in the international market, such loan facility through amendments in SDF was necessary, Mr Kumar said. Government has brought down the levy on sugar from 40 per cent to 15 per cent, however, complete deregulation would take more time and will be done only when necessary.