Rami Sugar to pay back Rs 12 crore dues
Meet held to help revive defunct Brahmavar sugar factory
Rami Sugar Infrastructure Limited which had taken over the defunct Bramhavar Cooperative Sugar Factory two years ago on a 30 year lease has agreed to release Rs 12 crore immediately to settle the long pending dues to sugarcane growers who supplied the sugarcane to the company in the past as well as the arrears to the employees and the loans from several Primary Co Operative Societies in the district, informed Home Minister Dr V S Acharya.
Speaking to the media persons after chairing a meet with the Commissioner for Sugarcane Development A K Monnappa, representatives from the sugarcane growers and from Rami Sugars to find means of revival of the factory which has been defunct for the last eight years, Acharya said that though Rami Sugars from Mumbai have taken over the factory two years ago, it could not start the work due to some technical problems, mainly the selection of the suitable partners. He informed that the firm has now partnered with Sri Annapoorna Groups from Hyderabad.
The company has agreed to stick on to the original agreement for the total investment of Rs 31.68 crore including settlement of all dues and rejuvenation of the factory for crushing sugarcane.
The representative of the company present at the meeting had also agreed to make immediate advance payment of Rs 12 crore and rest in equated yearly payment of Rs 1.5 crore. The factory would commence crushing of sugarcanes after a year, he said.
Acharya said that the government assured the company that besides production of sugar, it would also be allowed to establish a distillery for the co-generation of Ethanol besides enhancing the crushing capacity to 25,000 tones.
The outcome of the meeting will be presented before the next cabinet meeting for approval, he added.
Acharya said that it is the ernest intention of the State government to revive the defunct factory and help both the employees and sugarcane growers of Udupi district.
There is already 12,000 acres of land in the district that is under sugarcane cultivation. Non-payment of dues and dis functioning of the factory has made farmers apprehensive of sugarcane cultivation.
The growers need to be motivated to take up sugarcane cultivation.
The Regional Agricultural Research Centre at Bramhavar has come forward to supply sugarcane seeds to the farmers for cultivation.
Efforts would also be made to provide 8 hours power supply to the pump sets used for sugarcane cultivation. Once the much delayed Varahi irrigation project was over, the farmers of Kundapura and Udupi could also utilise the water from this project, he added.
Udupi MLA Raghupathy Bhat, Kaup MLA Lalaji R Mendon, MLC Prathapchandra Shetty, Deputy Commissioner Hemalatha and others were present.
DH News Service
