Cong leader accuses sugar company of violating agreement

The state government has plans to resume Mysore Sugar (MySugar) Company under operations and maintenance (O&M) model as the Pandavapura Sahakari Sakkare Karkhane (PSSK) has resumed production and completed one season of crushing on the same lines, under the management of MRN Sugar Company founded by Minister for Mines Murugesh Nirani.

However, Dr H N Ravindra, Congress leader, alleged that MRN Sugar Company has not fulfilled the conditions of the 40-year-lease agreement in PSSK, so far. “While PSSK is India’s first cooperative sugar factory, MySugar is the nation’s first and only government sugar factory — both in Mandya district. If both are privatised, the identity and uniqueness of Mandya district will be lost. Privatisation will only lead to exploitation of farmers and employees,” he said.

Ravindra said, “As per the terms and conditions agreed upon, Rs 5 crore as security and Rs 20 crore as upfront amount was to be deposited, before commencing operations. The upfront amount was meant to pay pending salaries of 36 months to employees and also to settle the issue of their gratuity.”

“Besides, the agreement is to retain all employees. If at all they have to be dropped, all norms of Voluntary Retirement from Service (VRS) should be followed and monetary benefits settled. However, MRN Sugar Company has sacked 21 contract employees, who are working since over 11 years, without following any norms. If they are not reinstated by April 16, a movement would be launched on April 18, to chase MRN Sugar Company management out of PSSK premises,” he said.

Ravindra said, “Even though MRN Sugar Company claims to have bagged the tender, to operate PSSK, for Rs 405 crore, it is operating by paying a meagre amount of Rs 5 crore.”

“Besides, the agreement between MRN Sugar Company and the government is not registered. Nirani is not just an industrialist, but a responsible people’s representative and a minister. However, his representatives, at PSSK, behave in an arrogant manner. Mandya deputy commissioner, who is also designated as Special Officer of PSSK, Cane Commissioner, Principal Secretary for Sugar Industries, and others are responsible for the state of affairs in PSSK,” he said.

He said that he went to PSSK as the contract employees complained about their removal. “But, after reaching PSSK, I learnt that the MRN Sugar Company is operating without fulfilling the terms. In fact, they are trespassers on PSSK premises,” he claimed.

Deputy Registrar for Cooperatives J Vikram Raj Urs, who is also designated as Managing Director of PSSK, admitted that MRN Sugar Company has not registered the agreement and unless the agreement is registered, it would not pay the upfront amount of Rs 20 crore.

“However, I have written a letter to the company to pay the upfront amount. The 21 employees in question were handed over by MRN Sugar Company to PSSK. But, as PSSK in not operating the factory, there is no scope to use their services. Thus, they were terminated,” he said.

The officials of MRN Sugar Company said that the employees in question work on contract. “It is a procedure to discontinue their services after completion of every crushing season. Accordingly, they were returned to PSSK management. As the fee for registration is exorbitant, the company has sought a concession. Unless the agreement is registered, the upfront amount cannot be paid. In the interest of farmers, the government had ordered to start the operations despite pending registration of the agreement. Most of the problems will be solved once the agreement is registered,” they said.