The Hindu : Karnataka / Hassan News : Factory to start crushing operations in July

Online edition of India's National Newspaper
Wednesday, May 04, 2005

Karnataka

Karnataka - Hassan

Factory to start crushing operations in July

Staff Correspondent

Farmers have agreed to supply sugarcane

HASSAN: The Deputy Commissioner and administrator of the Hemavathi Cooperative Sugar Factory, K.H. Ashwathanaryana Gowda, said here on Tuesday that the factory will start the crushing operations on July 1.

Speaking to The Hindu , he said farmers have entered into an agreement with the factory to supply 1,86,000 tonnes of sugarcane.

However, some of them supplied sugarcane to jaggery-manufacturing units and khandasari sugar units last year as they got a higher price than what the factory offered, he added.

To a query on the delay in conducting elections to the managing committee of the factory, which completes its term in June, he said it is owing to a case relating to the superseding of the factory, which is pending in the High Court. Elections will be held only after the pronouncement of the verdict, he added.

The factory is having stocks totalling 79,000 quintals and awaiting permission from the Union Government to clear it. Plans are afoot to upgrade the factory, and a technical expert who visited the factory recently has promised to prepare a proposal in this regard.

Mr. Gowda said there is no proposal to expand the factory in view of its financial condition.

The factory is yet to clear dues worth Rs. 13 crores, including Rs. 6.68 crores as interest on a loan borrowed from the Government, purchase tax arrears totalling 4.32 crores and Rs. 2 crores as bridge loan.

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