State govt. to support sugar factories in North Karnataka
The Karnataka government will provide financial aid to Krishna, Nandi, and Bhimashankar cooperative sugar factories to ease debt burdens and support expansion plans. The factories seek ₹472 crore in total and plan to invest in co-generation and ethanol units. CM Siddaramaiah has directed officials to coordinate with relevant departments to ensure timely assistance, Minister M.B. Patil announced.
The State government will release financial assistance to Krishna Cooperative Sugar Factory in Athani taluk of Belgaum district, Nandi Cooperative Sugar Factory in Babaleswar taluk of Vijayapura district and Bhimashankar Cooperative Sugar Factory in Indi taluk.
This was announced by Minister M.B. Patil after a meeting of officers, legislators and other stakeholders in Bengaluru on Monday.
Chief Minister Siddaramaiah has instructed officials to prepare a detailed plan of financial allocation to these cooperative bodies, Mr. Patil said in a press release.
“The Krishna Cooperative Sugar Factory has sought assistance of ₹192 crore, Nandi Cooperative Sugar Factory ₹150 crore and Bhimashankar Cooperative Sugar Factory ₹130 crore. These factories have promised to divert the revenue from co-generation of power towards repayment of loans, if the State government helps them financially,” the Minister said.
“The State government understands the condition of the cooperative sugar factories and is ready to help them. They are facing burden of term loans, payments to farmers, cost of sugarcane harvesting and transportation and additional investment for sugar and power generation units. The Krishna factory plans to set up a 27 MW co-generation unit and the Nandi factory is interested in setting up a 37 MW co-generation unit. In addition, the Krishna and Bhimashankar factories are also planning to set up ethanol production units,” the Minister said.
“The Chief Minister has assured us of assistance. He has instructed officers to hold detailed discussions with the Sugar Commissioner and National Cooperative Development Corporation officials in this regard,” Mr. Patil said.
He expressed the confidence that all efforts will be made to ensure timely assistance from the State government to these factories.
Ministers H.K. Patil, Shivanand Patil and H.C. Mahadevappa, MLAs Yashwant Rayagouda Patil, J.T. Patil, Chief Secretary Shalini Rajneesh, Additional Chief Secretary to Chief Minister L.K. Atiq, Additional Chief Secretary to Energy Department Gaurav Gupta, Finance Secretary P.C. Jafar, Nandi Sugar Factory president Kumar Desai Jainapur, Nijalingappa Sugar Company Managing Director Rajagopal and other senior officials were present, according to the release.
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Source : The Hindu
