New Rules for Sugarcane IEM Reinstatement

The Central Government has issued the Sugarcane (Control) Amendment Order, 2025, under the Essential Commodities Act, 1955, updating the Sugarcane (Control) Order, 1966. A significant addition is Clause 6F, which lays out the framework for reinstating derecognised Industrial Entrepreneur Memorandums (IEMs).

Under the new rules, reinstatement will be reviewed on a case-by-case basis. Conditions include submission of fresh or additional bank guarantees INR 50 lakh per year for regularising expired periods or seeking extensions. A one-time relaxation is still applicable for the COVID-19 period (March 2020 - February 2022).

The reinstated IEM’s validity can be extended up to two years, not exceeding one year at a time, for completing the necessary steps. An additional extension of up to two more years is allowed strictly for starting commercial production. However, failure to meet deadlines will result in forfeiture of bank guarantees.

All reinstated IEMs must follow the minimum distance standards and adhere to other existing provisions, unless specified otherwise in the reinstatement order and after consultation with the State Government and the Ministry of Law and Justice.