Amit Shah announces two Rs 1,500 crore cooperative plants in Kolhapur to boost sugar sector
Amit Shah announced two Rs 1,500-crore cooperative projects in Kolhapur to support sugar mills through ethanol, CBG, citric acid and machinery production. He highlighted tax waivers, Covid-era loans, ethanol policy support and plans to raise ethanol blending to 30%.
Kolhapur: Union Home Minister and Cooperation Minister Amit Shah announced two major cooperative sector projects worth Rs 1,500 crore each in Kolhapur district aimed at strengthening sugar mills through value-added production and machinery support for allied industries.
Addressing a public rally in Ichalkaranji, Shah said a Rs 1,500 crore cooperative project will be established in Kolhapur district to support sugar factories that are unable to independently set up facilities for ethanol, compressed biogas (CBG), citric acid and other byproducts.
He said the proposed common facility will enable cooperative sugar mills to diversify beyond conventional sugar production and generate additional revenue streams. According to Shah, profits earned from the project will be shared among sugar mills in Maharashtra.
Shah added that once the Maharashtra government grants approval, work on establishing the unit will begin within three months.
Alongside this, Shah also announced another Rs 1,500 crore initiative linked to machinery and industrial support for cooperative units. Referring to plans involving National Heavy Engineering, Pune, he said the investment would assist in developing and supplying machinery required for sectors including dairy, ethanol, citric acid and CBG production.
According to Shah, the objective is to create an integrated support ecosystem for cooperative industries and strengthen long-term sustainability of sugar factories through value addition and industrial diversification.
Highlighting measures taken by the Centre for the sugar industry, Shah said income tax liabilities of sugar mills amounting to Rs 46,000 crore had been waived since 2016 under Prime Minister Narendra Modi’s leadership.
He also said that during the Covid period, cooperative institutions received loans exceeding Rs 10,000 crore through the National Cooperative Development Corporation (NCDC).
On ethanol policy, Shah said ethanol blending stood at around 1.5 per cent before the current government assumed office and added that the government has now decided to move towards 30 per cent blending.
He further stated that GST on ethanol had been reduced from 28 per cent to 5 per cent and said policy support had helped revive closed sugar mills.
Shah said the Centre’s broader strategy has been to create multiple revenue sources for sugar mills through ethanol, bioenergy and value-added products.
He also said that over the last 12 years, the government had transferred Rs 4.28 lakh crore directly into farmers’ bank accounts.
Earlier, speaking at the rally Maharashtra Chief Minister Devendra Fadnavis said the sugar sector had faced repeated challenges over the past decade due to global conditions, but support measures introduced by the Centre – including MSP interventions, soft loans, tax relief, ethanol blending and promotion of CBG – helped cooperative sugar mills remain resilient and identify new growth opportunities.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : ChiniMandi
