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Leasing out of Aland sugar factory to private party opposed

Special Correspondent


  • Farmers to take out protest rally on Friday
  • Government accused of ignoring the factory
  • Rs. 5 crores sought to resume crushing

    GULBARGA: Sugarcane growers coming under Aland Cooperative Sugar Factory will hold a protest rally here on Friday urging the Government not to lease out the factory to private operators and to take steps to resume crushing this season by providing the working capital.

    Addressing a press conference here on Monday, former Minister S.K. Kanta, who represents sugarcane growers coming under the factory in Bhusnur in Aland taluk, said the move by the State Government to hand over operations of the sugar factory to a private party will be opposed by farmers.

    He alleged that some officials have singled out the sugar factory, which can be revived by converting government dues into equity and extending the time for payment of interest due to the Bidar Urban Cooperative Bank. He noted that the Sugar Directorate is in favour of reviving the factory by taking soft loans from the NCDC. It had submitted a proposal to the Government seeking an assistance of Rs. 23 crores from the NCDC. But surprisingly, the proposal has not been forwarded to the NCDC, he said.

    Mr. Kanta said the Government is not taking up the case of reviving the sugar factory seriously. While it is going out of its way to help other cooperative sugar factories, it has shown little interest in the case of the Aland Cooperative Sugar Factory, he alleged. The Government, besides providing the required working capital of Rs. 5 crores to start crushing, should also make recruitments to the posts of chief engineer, managing director and sugarcane development officer in the factory, he said.

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