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Sick sugar units to be leased to private sector: Minister

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S.A. Ravindranath
S.A. Ravindranath

Special Correspondent

Various factors attributed to bad state of these factories

Nine units in cooperative sector to be leased

State’s annual sugar production is 25 lakh tonnes

BANGALORE: The State Government has decided to lease nine sick cooperative sugar factories to entrepreneurs to revive them.

In a written reply to an unstarred question of Ivan Nigili (Nominated), Minister for Sugar S.A. Ravindranath told the Legislative Assembly on Wednesday that nine sugar factories in the cooperative sector, two in government sector, one joint and three in private sector had become sick in the State.

Administrative failure by the management of the factories, hike in the cost of sugar production and fall in prices of sugar were the major reasons for the factories becoming sick.

The Government had leased five factories in the cooperative sector so far, he said.

The cooperative sugar factories at Doddabathi in Davangere district, Udupi, Hassan, Haveri, Pandavapura (Mandya district), Raibag in Belgaum, Bhoosanur in Gulbarga, Chunchanakatte in Mysore and Hiriyur in Chitradurga district had become sick. The government-owned Mysore Sugar Factory, Mandya; Mysore Paper Mills Sugar Factory, Bhadravathi; and the joint cooperative unit at Gangavathi too incurred loss. Three private factories at Devi Sugars at Shimoga; Siraguppa Private Sugars at Gowribidnur in Kolar district; and Sundari Sugars at Kampli in Bellary district had become financially unviable, the Minister said.

The Government had decided to provide working capital of Rs. 65 crore to the Mysore Sugar Factory in 2007-08.

It provided working capital of Rs. 25.2 crore in 2005-06, and Rs. 10 crore in 2006-07, he said.

A sum of Rs. 5.06 crore had been released to the factory for implementation of the voluntary retirement scheme in 2006-07, he said.

Mr. Ravindranath said the annual sugar production in the State was 25 lakh tonnes while the exports touched 1.5 lakh tonnes.

It was proposed to export around two lakh tonnes of sugar, he said.

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