Gurupadappa Nagamarapalli, MLA and chairman of Naranja Sahakari Sakkare Karakhane, has urged the government to waive off the loans taken by three coopertaive sugar factories in the district.
Inaugurating the crushing operations at the factory here on Monday, he said the factory had suffered losses of about Rs. 25 crore.
In addition, all the three factories, including Bidar Sahakari Sakkare Karakhane and Mahatma Gandhi Sahakari Sakkare Karakhane, were now burden with loans and interests on loans. Therefore, the government should rescue them from the financial crisis, he said.
He said the factory aims at crushing five lakh tonnes of sugarcane in this season. Due to heavy rains, the sugarcane output is expected to reach 25 tonnes per acre this year, up from 21 tonnes last year.
In the last season, we crushed 5.18 lakh tonnes and produced 5.15 lakh quintals sugar. All sugarcane suppliers have been paid their dues, he said. The factory has a crushing capacity of 3400 tonnes per day. We plan to increase it to 5,000 tonnes.
The cogeneration plant produces 8 megawatts of power. We earned Rs 2.84 crore by selling it to Gescom last year. We plan to increase this to 14 mega watts. He also said the factory would raise Rs 200 crore loan from financial agencies to start an ethanol plant. eom