The Group of Ministers constituted to review the privatisation of Nizam Sugars Ltd., has decided in principle to recommend its take over by the State Government.
The GoM, comprising A.Ramanarayana Reddy, P.Sudharshan Reddy. P.Sunitha Laxma Reddy, Ganta Srinivasa Rao, met here on Friday and decided to go by the legislature sub-committee’s report recommending withdrawal of joint venture scheme.
Nizam Sugars was privatised in 2002 by the then Telugu Desam Government after it began incurring losses. It was set up by the Nizams about 80 years ago and was earning profits till it fell on hard times leading to its privatisation in public –private participation.
Long pendingMs. Sunitha Laxma Reddy told The Hindu that it was a long pending demand in the Telangana region that the government should regain control over the sugar factory. The private management had invested about Rs.180 crore to Rs.190 crore and the government would have to refund the investment along with interest and other miscellaneous expenditure incurred by the private management.
ModalitiesShe however said that the modalities for the takeover would have to be worked out and the GoM would submit its report to the Government in two or three days and it would be presented to the cabinet for its approval.
About 10 lakh sugarcane growers in Bodhan in Nizamabad, Mumbajipet in Medak and Metpalli in Karimnagar supply sugarcane to the factory units.
Ms. Sunitha said that the decision to take over the sugar factory would protect the interests of the farmers. The sugar factory incurring losses might go under the Board of Industrial and Financial Reconstruction leading to its shut down by the private management.
It may be recalled that a public interest litigation was filed by representatives of Nizam Sugars Protection Committee against the privatisation. There was also a counter demand from a section of the farmers that the government should transfer its share to the private management to enable it to pay minimum support price to the farmers.
