Sugar Development Fund (SDF) was established in the year 1982, through an act of Parliament. It is being utilized presently to grant loans to the sugar mills for facilitating the rehabilitation and modernization/ Bagasse based co-generation power projects/ production of anhydrous alcohol or ethanol from alcohol/ conversion of existing ethanol plant into Zero Liquid Discharge (ZLD) plant and development of Sugar cane. The loans are provided at a concessional rate of 2% below the prevailing bank rate).