Budgetary allocation for MySugar an eyewashing tactic

While the State government had announced Rs 120 crore for reviving MySugar Factory in its recent budget, the actual amount to be in hand is only Rs 43.92 crore, after the tax and loan deductions.

It is alleged that the Chief Minister Siddaramaiah had played safe by announcing Rs 120 crore, knowing fully well that a huge amount will be deducted and returned to the exchequer in the form of tax and loan dues.

After paying the loans and taxes of Rs 76.08 crore, the amount left will be a meagre Rs 43.92 crore. Out of this, if Rs 17 crore arrears was paid to the mills for taking up crushing works, Rs 27 crore will be available to take up development works.

Committee

The leaders who had recently participated in the meeting related to save MySugar factory, demanded Rs 50 crore for setting up a new mill, Rs 70 crore for distillery, Rs 50 crore for clearing the arrears bills of the farmers and Rs 50 crore as working capital. The loans disbursed by the various governments to the factory so far is Rs 94 crore against the interest accrued at Rs 68 crore.

The meeting decided to request the government for the total waiver of the interest and the loan amount be converted into equity shares. The dignitaries have also decided to meet the Chief Minister to press for their demands, soon.

However, the people opined that the leaders should have decided about this before the budget and exerted pressure on the CM, to get more funds.