The Opposition AIADMK has urged Lieutenant Governor Kiran Bedi not to give approval to the government’s move to hand over the Pondicherry Cooperative Sugar Mill in Lingareddypalayam to private players.
AIADMK Legislature Party leader Anbalagan told presspersons here on Sunday that the mill, started in 1984, should have been made a profitable undertaking by the government.
It was facing a financial crisis because of its inability to make proper payment for the supply of sugarcane to farmers.
Instead of helping the mill to get rid of its losses, the government was busy with selling the undertaking to private players.
This was a step in the wrong direction and Ms. Bedi should intervene and prevent the sale, he said.
‘Against the rules’
Mr. Anbalagan said the AIADMK would file a case in the Madras High Court if the Lieutenant Governor failed to curtail the government’s move.
Employees and farmers in the mill had been enrolled as shareholders in the undertaking 19 years ago and the government could not dispose of the undertaking without due approval.
The government was functioning in contravention of the spirit of the Constitution, he said.
He suggested that the mill start a molasses plant on 10 acres of land on its premises to produce rectified spirit. The government was now procuring the rectified spirit from neighbouring States by spending nearly ₹21 crore.
Payment sought
The Puducherry unit of the All India Kisan Sabha has strongly opposed the move. In a statement, V. Sankar of the sabha said the mill was facing a financial crisis and the government was yet to disburse payment of ₹13.30 crore for supply of sugarcane by farmers.
The government should order a probe into the malaise and ensure immediate payment of arrears to sugarcane farmers, he added.
