Karnataka to give notice to 52 sugar factories on cane arrears

Notices were already served to sugar factories in this regard and one more would be issued shortly, setting a 15-day deadline to clear Rs 63 crore sugarcane arrears they owe to farmers, Minister for Sugar Shivaraj Tangadagi told reporters here.

Naranja Sugars in Bidar owed a arrears of Rs 12.4 crore, he said.
For 2010-11 season, sugar factories have been directed to clear the arrears within a fortnight of supplying sugarcane, he said.

The government has so far released Rs 60 crore to Mysugar, a state owned PSU for its revival.

A sum of Rs five crore additional working capital has also been sanctioned to Pandavapura Sugars, which now has been leased to Mysugar (Mandya Sugar factory), taking the total working capital released to Rs 10 crore, Tangadagi said.

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