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Employees demand revival of Raibag sugar factory

Staff Correspondent

Workers allege financial irregularities in the factory


Union says
  • Rs. 16 cr. is due to employees and Rs. 15 cr. to growers
  • The management has not repaid a loan of Rs. 51 crore raised from Belgaum District Central Co-operative Bank



    IN DISTRESS: Workers of the Raibag Sahakara Sakkare Karkhane continuing their dharna in front of the Deputy Commisioner's office in Belgaum, for the 113th day on Thursday.

    Belgaum: The dharna by workers of Raibag Sahakara Sakkare Karkhane, in front of the Deputy Commissioner's office, entered the 113th day on Thursday

    The workers, under the banner of "Kalpavriksha RaiSugar Employees Union" have been demanding that the Government take immediate steps to re-start crushing operations in the factory for the season commencing this month. They have also been pressing for investigation by the Central Bureau of Investigation into the alleged large-scale financial irregularities in the factory.

    Though successive governments promised to revive the factory, nothing came of it. The union alleged that the factory management had not disbursed salaries to employees. About Rs. 16 crore was due to the employees since 1995-96. Also, the management had not made payment of Rs. 15 crore for sugarcane supplied by growers.

    In addition to these dues, the management was unable to repay a loan of Rs. 51 crore raised from the Belgaum District Central Co-operative bank. Yet, none has been made accountable for such the huge loss resulting in the closure of the factory.

    `In dire straits'

    As a result of closure, both growers and employees depending on the factory have been facing untold hardship.

    About 40 employees of the factory and 20 growers committed suicide between 1995 and 2005 owing to extreme financial difficulties, as the factory management had neither released their salaries nor paid their sugarcane bill. The union demanded that the Government immediately revive the factory. It also urged the Government to release group gratuity and insurance benefits, pending salaries and dues to sugarcane growers.

    The Director of Sugar Directorate, Manjunath, who had visited Belgaum in July, had met the agitating workers and returned to Bangalore with an assurance to find an early solution.

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