Sick, liquidated sugar mills up for leasing

In an attempt to minimise financial liabilities arising from sick and liquidated sugar industries, the Maharashtra government has decided to...

In an attempt to minimise financial liabilities arising from sick and liquidated sugar industries, the Maharashtra government has decided to offer such units on lease to the private and the cooperative sector for a period ranging upto seven years.

There are 13 sugar factories which are at the liquidation stage, while 72 sugar factories are sick in the state, according to Chief Minister Vilasrao Deshmukh. Most of these units have financial guarantee of the government of Maharashtra.

The new plan intends to offer ailing sugar factories that cannot get the NABARD restructuring benefits, to the private and cooperative sectors, so that they generate revenue which can help the government service the liabilities.

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‘‘Those willing to take up such units will have ready sugar factories, which will need minimal investment to get back in action,’’ Deshmukh said about the incentive which the lessees will have in the new plan.

As per the new plan, the state has finalised lease amount on region basis, depending on the local sugarcane acreage and availability. Besides, the amount will vary as per the crushing capacity of the factories.

In the Khandesh and Vidarbha region, which has less cane acreage, the lease amount for a sugar factory with 1250 metric tonne crushing capacity will be Rs 50 lakh per year, while the same for 2500 MT will be Rs 1 crore, Deshmukh said.

ENS and agencies