The Sugar Development Fund was instituted by the Govt of India (GoI) in 1982 with the objective of rendering financial assistance through loans at concessional rates for rehabilitation and modernization of sugar factories as well as for sugarcane development. The scope has subsequently been enlarged to cover projects involving bagasse based co-generation of power and production of Anhydrous alcohol or ethanol from molasses undertaken by Sugar Units.

IFCI has been the Nodal Agency for monitoring of SUGAR DEVELOPMENT FUND (SDF) loans for projects related to modernization and expansion, co-generation of power and production of alcohol/ethanol in the private sector.

As a nodal agency, IFCI undertakes loan documentation, creation of security, recommendations to GoI for disbursement of funds, monitoring the progress of projects during implementation and operations, recovery of SDF dues and furnishing clarifications to queries of SDF.

In line with its mandate for industrial development, IFCI in its role as the nodal agency for SDF has till date, facilitated sanction of SDF loans to 497 accounts for an aggregate sanctioned amount of ` 4329.62 crore and disbursed amount of ` 3753.69 crore.