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Maharashtra govt mulls over soft loans for drought-hit sugar factories

The state CM said that the government will consider extending soft loans to the sugar factories in the areas worst hit by drought.

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Devendra Fadnavis
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Chief minister Devendra Fadnavis on Wednesday assured that the state government will consider providing soft loans to the sugar factories in Marathwada, Solapur and Ahmednagar, the areas worst hit by drought.

A delegation led by former deputy chief minister Ajit Pawar met the chief minister to raise the issues faced by the state's sugar factories. Maharashtra State Cooperative Sugar Factories Federation chairman Shivajirao Nagawade, Dilip Walse-Patil, Jayant Patil, Vijaysinh Mohite-Patil, Prakash Awade, Jayprakash Dandegavkar and others accompanied Pawar. Minister for cooperation Chandrakant Patil, minister of state for cooperation Dadaji Bhuse, minister for women and child development Pankaja Munde and sugar commissioner Vipin Sharma were also present.

Nagawade later said restructuring of loans and providing subsidy for drip irrigation for cane were some of the solutions discussed during the meeting, which was positive.

Fadnavis said the successive drought situation and reduced cane and sugar production has resulted in a situation where it would be difficult to operate the factories for 2016-17 crushing season. He added that since the sugar factories were facing a crisis, the government will consider providing soft loans and he will take up the issue with the Union government.

Minister Patil informed that his department has issued seizure notices to 20 sugar factories for non-payment of Fair and Remunerative Price (FRP) to cane farmers. He said there were very few factories that were yet to pay the dues, and the government was ready to wait till May 31, before initiating the action of seizure.

Fadnavis further told the delegation that the stock limit policy was determined by the Union government and he will follow it up with them. He informed the delegation that the issues pertaining to increasing target for co-generation to 1,000 MW for sugar factories and bagasse production from the sugarcane residue would be verified before arriving at any decision.

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