Karnataka   

Hope for Sangur factory workers, farmers

HAVERI: For over a month wives of workers of the Karnataka Cooperative Sugar Factory (KCSF) in Sangur have been camping in front of the office of the Deputy Commissioner here in order to pressure the authorities to take steps to revive the factory.

Recent developments, especially after they organised a “Raj Bhavan Chalo” programme, indicate a possible solution to their woes.

After the recent meeting between workers of the factory, bankers, stakeholders and Commissioner for Sugar B.H. Manjunath, the workers are hopeful of the resumption of crushing of sugarcane at the factory.

Nineteen months have passed since they last received salaries.In the meeting with Mr. Manjunath, some representatives of cooperative banks sounded positive with regard to waiving a part of the interest on loans taken by the factory.

However, for that they required the sanction of the State Government. It was now up to the State Government to revive the establishment, they said.

According to official sources, the KCSF at Sangur has a net debt of over Rs. 55 crore, including those to be paid to farmers (Rs. 54 lakh), workers (Rs. 13.25 crore), financial institutions (Rs. 23.31 crore), the Government (Rs. 18.34 crore) and the previous contractor, Ambika Sugars (Rs. 12 lakh).

In the recent tenders floated for giving the factory on lease for a period of 30 years, Gem Laboratory of Davangere made a bid of Rs. 37 crore, which has given some hope to those trying to revive the factory.

The lone sugar factory in the erstwhile undivided Dharwad district (Dharwad, Haveri and Gadag districts), the KCSF, started production in 1983-84 and was doing fine till 2000. However, trouble started after the Karnataka Central Cooperative (KCC) Bank, with which the factory had deposited its funds, collapsed.

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