The government has proposed to run the loss-making Pandavapura and Mysugar factories, located in the sugarcane growing district of Mandya, on a PPP model.
Minister for Sugar Shivaram Hebbar said that both sugar factories have been incurring financial losses for many years and it was difficult for the government to run them since they required a huge amount of funds. It was proposed to either sell both factories to private parties or run it on PPP model, he said.
Steps for enhancing the crushing capacity and cogeneration of power in order to boost the functioning of the two factories will be taken along with repairs, he said.
In fact, many employees of Mysugar factory have opted for the voluntary retirement scheme.
A huge sum of ₹428 crore was spent on Mysugar in the past 10 years. Mysugar, which was established in 1934, is considered the source of sustenance for cane-growing families in more than 100 villages in Mandya and Srirangapatna taluks.
The mill was declared sick with the Board for Industrial and Financial Reconstruction owing to poor administration, nepotism, political interference and financial irregularities.
