The Hindu : Karnataka News : Four sugar units get Rs. 42-cr. loan

Online edition of India's National Newspaper
Tuesday, Sep 14, 2004

Karnataka

Karnataka

Four sugar units get Rs. 42-cr. loan

By Our Staff Reporter

BANGALORE, SEPT. 13. The National Cooperative Development Corporation (NCDC) today released a loan of Rs. 42 crores to four cooperative sugar factories in Belgaum and Bidar districts. A Government Order has been issued in this regard.

Speaking to presspersons after a meeting of directors of cooperative sugar factories, legislators and senior officers of the department, the Industries Minister, P.G.R. Sindhia, said the loan would be disbursed to the Markandeya Cooperative Sugar Factory, Someshwara Cooperative Sugar Factory and Dhanalakshmi Cooperative Sugar Factory in Belgaum district, and the Naranja Cooperative Sugar Factory in Bidar.

Among the leaders who participated in the meeting were Bheemanna Khandre; his son Eshwar Khandre; Gurupadappa Nagamarapalli; B.M. Bannikod and Siddu Nyamagowda, legislators; Umesh Katti, former MLA; and Arkalgud Ramaswamy and N. Gokul Ram, principal secretaries, Cooperation and Commerce and Industries departments, respectively. Mr. Sindhia said some of the new cooperative sugar factories, which were about to start production, would also get loans from the NCDC.

The Minister said cane-crushing operations in cooperative sugar factories would commence on October 15 in Belgaum, Bijapur and Bidar districts. They required an initial amount of Rs. 28 crores for the pre-operative expenditure, and the Government had agreed in principle to pay the sum, which would have to be repaid.

Recommendations

Mr. Sindhia said that a Cabinet subcommittee of the previous government, under the chairmanship of the then Agriculture Minister, V.S. Koujalgi, had submitted a report on reviving some of the ailing cooperative sugar factories and the recommendations had been accepted by the coalition government. The recommendations of the committee would be taken up by the Cabinet. Some of them would be implemented. The Government, he said, had taken steps to prevent the sale of sugarcane to factories in Maharashtra.

Asked about the arrears to sugarcane growers, the Minister said the Government owed Rs. 251 crores to them, and the matter would be discussed by the Cabinet.

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