MUMBAI: The cash-strapped state government with debts of over Rs 6 lakh crore has guaranteed loans worth Rs 28 crore to two sugar factories controlled by politicians from the Congress and the NCP.
The state has guaranteed a loan worth Rs 10 crore to the Rajgad cooperative sugar factory in Pune district controlled by Congress MLA Sangram Thopte and the other loan worth Rs 18 crore to the Sahakar Shiromani Vasantrao Kale sugar factory in Pandharpur controlled by former MLA Kalyan Kale who recently switched from the BJP to the NCP. The guarantee has been extended only for the period of one year.
“Pre-seasonal loan guarantees were extended keeping in mind that other factories in Pandharpur have not performed well and the one in Pune is in a location which is quite far from other factories,” said a senior official.
Last year, the MVA government had extended guarantees for loans worth Rs 516 crore to 32 sugar factories. The government said cooperative sugar factories were finding it difficult to get loans from cooperative banks after new Nabard guidelines were enforced which required the borrower to have a positive net disposable resource.
Officials, though, said only seven of the 32 factories availed of the guarantee given last year since the conditions were too strict. The Rajgad factory had been given a guarantee for a Rs 12 crore loan last year as well.
Sugar factories take pre-seasonal loans ahead of the crushing season in October to overhaul machinery and give advances to labour for harvesting and transportation.
When the MVA government took over in November 2019, it cancelled guarantees on loans granted by the former BJP-led government to cooperative sugar factories. Sugar and politics is deeply intertwined in Maharashtra, with sugar barons rising to become chief ministers and cabinet ministers. Several leaders from Congress, NCP and BJP control the factories.
The above news was originally posted on timesofindia.indiatimes.com
