The Hindu : Andhra Pradesh / Hyderabad News : Probe into NSL units’ sale demanded

Online edition of India's National Newspaper
Wednesday, Aug 15, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Probe into NSL units’ sale demanded

Diversion of Rs 550 crore by TDP to private sugar factories alleged

HYDERABAD: Nine Congress MLCs have demanded an enquiry into the circumstances leading to ‘diversion’ of Rs.550 crore by the Telugu Desam Government to managements of private sugar factories which purchased the Nizam Sugars Ltd and cooperatives sugar units in the State.

Palvai Goverdhan Reddy and former PCC president P. Narsa Reddy at a press conference here on Tuesday demanded action against officials who were responsible for NSL units’ sale under the ‘Swiss Challenge Method’ that was declared illegal.

They said the units which could have been revived by spending a small amount, were sold to private sugar factories at throwaway prices.

Benefits given

Mr. Goverdhan Reddy said the NSL unit at Shakkarnagar, in Nizamabad district, was sold at reduced price to Delta Paper Mills, which re-christened the factory as Nizam Deccan Sugars Ltd (NDSL).

The TDP regime had extend many benefits to NDSL, including tax holiday and Rs.300 crore exemptions, on various fronts.

The NDSL management was earning Rs.15 crore profit every year, but was paying only Rs.1 crore to the Government, he alleged.

Referring to NDSL, he said the House Committee had referred to ‘irregularities’ committed by the management and officials in securing crop loans totalling Rs. 6 crore. The Nizamabad Collector and the Director-General of Vigilance had also confirmed them.

Similarly, the Bhimadole and Hanuman Junction Cooperative Sugar Factories were auctioned and sold at ‘cheap’ rates to certain parties, when others were willing to buy them at market rate, Mr. Goverdhan Reddy lamented.

He said the Chief Minister had taken a serious note of officials’ conduct and sought an action taken report on the House committee recommendations.

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