Rs 400-crore relief for sugar firms

PUNE: The state sugar industry heaved a sigh of relief with the government sanctioning a supplementary subsidy package of Rs 400 crore for the
industry on Sunday, which was announced by state co-operation minister Harshavardhan Patil here on Monday. Patil also said that all sugar factories in the state will be categorised as A, B, C and D as per their performances and financial positions.

The minister was speaking during the seminar, Sugar industry in state: Development and prospects', organised by the sugar commissionerate. He said, "The time-bound programme, of granting subsidy and categorising industries into segments, is to help revive the sugar industry and also to alleviate the ongoing crisis faced by the sugar sector."

Patil said the sugar commissionerate had recently completed a review of all the factories in the state. Based on this, the factories are being divided into four categories according to performance, financial positions and management. Although the work of finalising the factories in the A, B and C segments is still on, the chronic' cases have been identified as part of category D. The final draft of the list is expected to be released soon. This segmentation will help while designing relief and restructuring packages.

The minister said the Rs 400-crore package includes Rs 48-crore subsidy for sugar export, Rs 72-crore based on recovery percentage till March and Rs 72 crore for transport dues. The package also includes Rs 29 crore for payments to factories against excess production of sugar. He added that some of the decisions regarding the package will be implemented by the co-operation and sugar department on a priority basis, while some policies would require clearance from the cabinet.

Talking about the new policies related to the sugar industry, Patil said, "The government is working on various issues like uniformity in by-laws, staffing pattern and in rate of interest charged by co-operative banks, besides setting up a revolving fund. A committee comprising chairmen of five co-operative sugar factories will be set up to look into these issues."

He also said the all sugar factories in the state have been issued notices directing repayment of share capital. The state government has made available over Rs 1,000 crore as share capital to factories, which is to be repaid in instalments. The government is also working on increasing the paid-up value of shares of sugar factories from Rs 3,000 to Rs 6,000.
SOURCE: TOI