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Maharashtra extends bank guarantees to co-op sugar mills

Written by Parthasarathi Biswas
| Pune |

September 29, 2020 7:44:45 pm

Cooperative sugar mills, which want pre-seasonal loans to pay for harvesting labour and different works, had sought assist from the state authorities

Forward of the 2020-21 sugarcane crushing season, the best way Maharashtra’s political forces impression its sugar sector is as soon as once more evident within the checklist of cooperative sugar mills which have obtained state authorities ensures to lift funds from banks for his or her operations. Whereas the federal government has stood assure for extra mills managed by BJP leaders, the quantity sanctioned to NCP-led mills is far larger.

Cooperative sugar mills, which want pre-seasonal loans to pay for harvesting labour and different works, had sought assist from the state authorities, asking it to face assure in order that the mills may take loans from banks. After the federal government agreed, the Maharashtra State Cooperative Sugar Factories Federation had labored out an quantity of Rs 1,128.6 crore as financial institution assure for 38 mills to lift the mandatory short-duration loans.

The state authorities had instructed the sugar commissioner to look at every proposal and repair the assure quantity to be prolonged to the mills. Based mostly on the provision of cane and the mixed crushing capability of the mills, the commissioner had made a proposal to increase financial institution assure to solely 4 mills for an quantity of Rs 90 crore.

Subsequently, a committee headed by Deputy Chief Minister Ajit Pawar reviewed the proposals and got here up with a contemporary one,which was cleared by the state cupboard just lately.

The proposal, a replica of which is with The Indian The Press Reporter, reveals that the full quantity of financial institution assure sanctioned for the mills has labored out to be Rs 371.57 crore. Of the 38 proposals for financial institution ensures, eight have been rejected as these mills have been already going through motion from banks below the Securitisation and Reconstruction of Monetary Property and Enforcement of Securities Curiosity Act, 2002.

Of the 30 mills that made it to the ultimate checklist, 12 are managed by BJP leaders, 9 by NCP leaders, 4 by Congress leaders and three by Shiv Sena leaders. Two mills are managed by a blended physique with leaders of assorted events. The remaining two mills are managed by a physique with no recognized political affiliations.

Nevertheless it’s the NCP-led mills which have managed to get state ensures for the utmost quantity — Rs 152.97 crore for 9 mills – a lot larger than the 138.43 crore for the 12 mills managed by BJP leaders.

Mills managed by Shiv Sena and Congress leaders obtained Rs 26.81 crore and Rs 33.09 crore, respectively, in approach of financial institution ensures.

It’s no secret that ruling events in Maharashtra – a state the place political leaders have heavy stakes within the sugar sector — have used authorities largesse to sugar mills for leverage. Whereas the NCP-Congress authorities had prolonged comparable ensures to mills throughout its 15-year-long time period, the observe was adopted by the Devendra Fadnanvis-led BJP-Sena authorities as nicely.

Within the months earlier than the state Meeting elections final yr, quite a lot of sugar barons switched events, however many of those political calculations went awry when the Congress, NCP and Sena joined fingers to kind the federal government.

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