Karnataka : CM urged to reopen sugar factory in Bidar under the long-term lease model
The Bidar Chamber of Commerce and Industry has urged Karnataka CM Siddaramaiah to reopen the defunct Bidar Sahakari Sakkare Karkhane Ltd. under a 40-year LROT lease to a private player. Established in the 1960s, the factory once supported thousands of farmers and workers but has remained shut despite government approval for revival.
The Bidar Chamber of Commerce and Industry has submitted a memorandum to Chief Minister Siddaramaiah urging the State government to take immediate steps to reopen the Bidar Sahakari Sakkare Karkhane Ltd. at Hallikhed (B) in Humnabad taluk by leasing it to a competent private enterprise under the Long-term Lease, Renovate, Operate and Transfer (LROT) model.
In the memorandum jointly signed by chamber president B.G. Shetkar and honorary secretary Veerendra Shastri, the organisation has said that the cooperative sugar factory, established in the 1960s, was once a vital agro-industrial unit in the district.
Spread over 174 acres and with a crushing capacity of 3,500 tonnes of sugarcane per day, the factory supported the livelihood of 25,760 farmer members, over 600 workers and more than 5,000 agricultural labour.
The chamber emphasised that with sugarcane being cultivated on an average of 13,982 hectares in Bidar district, the factory played a crucial role in sustaining the rural economy in the region.
The memorandum noted that proposals have already been submitted to the State government requesting revival of the factory under private management through the LROT model for 40 years and the government recently issued an order supporting this.
However, the chamber expressed concern over delays in implementation, despite the existence of similar sugar cooperatives in the district, such as NSSK in Bidar and MGSSK in Bhalki, that are operating with even higher levels of debt.
In contrast, three private sugar factories in Bidar district, Bidar Kisan in Mugdal, Bhavani Sugar in Barur and Bhalkeshwar Sugar in Bajolga, have been running successfully and profitably, producing both sugar and valuable byproducts.
Given these practical considerations, the chamber argued that it will be unviable to operate the Bidar cooperative factory under the existing cooperative structure. Instead, it urged the State government to take over the factory’s liabilities and go ahead with leasing it to a private player under LROT model.
The memorandum also acknowledged the initiative taken by district in-charge Minister Eshwar Khandre who discussed the issue with fellow Ministers and legislators and agreed to lead a delegation to the Chief Minister to resolve the matter.
On behalf of farmers, traders and industrialists of Bidar district, the chamber has urged the State government to take up the issue in the next Cabinet meeting and initiate swift measures to restart operations at the Bidar Sahakari Sakkare Karkhane Ltd. without further delay.
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Source : The Hindu
