Karnataka HC issues stay order on 40-year lease of PSSK factory

The High Court of Karnataka has issued a stay on the state government’s order of leasing Pandavapura Sahakara Sakkare Kharkane (PSSK) (sugar factory) to Nirani Sugars Company.

Questioning the 40-year lease, the management board of NSL Sugars, Koppa had filed a writ petition before the high court. They sought a stay order, alleging that the government had taken an unilateral decision over the contract issue of the sugar factory. The high court, which heard the appeal, issued a stay order.

However, members of PSSK Labour Union claimed that the stay from the high court, is a hurdle to begin the factory. “The farming community in the region are worried. PSSK had stopped functioning four years ago. Thus, sugarcane growers of the region were supplying their produce, to factories in other districts and also to jaggery making units, for lesser price. The factory workers have not been paid salaries since months. Now, with the high court intervening, the farmers are a worried lot,” they explained.

As per the procedure, Nirani Sugars won the bid and bagged the contract for 40 years. The factory was scheduled to begin crushing of sugarcane on August 1. But, NSL Sugars of Koppa have brought a stay order, they said.

Sugarcane grower Dhanya Kumar said, “NSL Sugars is doing this for their selfish motives, as they would get the cane from the region for crushing. They should not test the patience of the farmers here.”