Centre initiates revival plan for 19 shut cooperative sugar mills in Maharashtra, seeks detailed financial data from State
The Centre plans to revive 19 closed cooperative sugar mills in Maharashtra by assessing their finances and pursuing reinvestment, financial assistance or PPP models with support from NCDC, Amul and IFFCO, aiming to boost rural employment and support sugarcane farmers.
Pune: The central government has taken a major step aimed at reviving the cooperative sector in Maharashtra, setting in motion a plan to bring back to life 19 cooperative sugar mills in the state that have remained shut for years. As part of this effort, the Centre has asked the state government to furnish updated information on these closed mills, including their financial condition, assets, and a complete account of outstanding loans and dues, Sarkarnama reported.
Once the state government submits the full details, each mill’s balance sheet will be examined individually. Based on this assessment, the mills will be brought back on track either through reinvestment, direct financial assistance, or the PPP (Public Private Partnership) model. Alongside the National Cooperative Development Corporation (NCDC), the Centre is also preparing to rope in major cooperative institutions such as Amul and IFFCO to support this revival drive.
Division wise spread of the shut mills
Maharashtra currently has 210 sugar mills, of which 19 cooperative units remain locked due to severe financial distress. The Solapur division accounts for the highest number of closures, with five mills shut — Santnath, Shri Swami Samarth, Shivshakti, Shri Adinath, and Shri Makai Cooperative Sugar Mill.
In the Nanded division, Godavari Manar and Jai Jawan Jai Kisan mills have been closed, while in Sangli, the Mahakali and Manganga mills have remained shut since 2018-19. In the Ahilyanagar division, the Kukadi, Dr. Baburao Tanpure, and Vasantraodada Patil mills were forced to close after banks seized assets over unpaid dues.
The financial burden on Pune division mills
Mills in the Pune division are carrying crores of rupees in accumulated loans and dues. Rajgad Cooperative Sugar Mill in Bhor taluka alone owes Rs 752.45 lakh in government share capital, Rs 123.28 lakh in guarantee fees, Rs 272.22 lakh under an OMB loan, and as much as Rs 4,500 lakh in NCDC loans.
The R.P. Ghodganga mill in Shirur carries a debt of Rs 543 lakh and stands mortgaged to the State Cooperative Bank. Meanwhile, the Yashwant mill in Theur owes Rs 3,141.58 lakh in government dues, which led the State Cooperative Bank to seal the mill.
Years of closure at these units have left local sugarcane farmers, mill workers, and transporters in complete distress. The Centre’s initiative is expected to bring significant relief to the rural economy and generate fresh local employment opportunities.
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Source : ChiniMandi
