Bank turns down loan of 7 sugar factories led by Mahayuti leaders
MUMBAI, April 23 -- The National Cooperation Development Corporation (NCDC), which grants loans to cooperative sugar factories with a bank guarantee by the state government, has rejected proposals of Rs 1,441 crore for sugar factories under the control of Mahayuti politicians.
The leaders include the BJP's Raosaheb Danve, Sangram Thopte and Basavraj Patil, former NCP MLA Ashok Pawar, and NCP leader and the late Ajit Pawar's close aide Prithviraj Jachak. Some of these politicians, including Thopte and Patil, had reportedly quit the Congress and joined the BJP only after being assured funding for their factories.
The state government had moved a proposal to the NCDC for cheaper loans to upgrade and operate 14 sugar factories controlled by Mahayuti leaders as well as the NCP (SP). While seven proposals were turned down, loans for seven other factories, including those linked to Mahayuti leaders such as Vinay Kore, NCP MLA Prakash Solanke and BJP leader Arun Lad, have been approved.
While rejecting the proposals, the NCDC pointed to the failure of these units to meet strict financial discipline conditions laid down by the state government. "The factories have defaulted on the Fair and Remunerative Price and dues to the state government, have been running at a loss for the last three years or have given out the factories on lease," said an official from the cooperation department. "Some have a net worth far below the benchmark or have indulged in financial irregularities." The official added that the proposals were cleared by the state cabinet before being sent to the NCDC. "A committee under the sugar commissioner and another at the state level headed by the cooperation minister had flagged the lacunae, but the proposals were still tabled before the cabinet and moved due to political compulsions."
Officials said the proposals have not been rejected outright but deferred. "The NCDC team visited the factories after the state government proposed loans of Rs 2,200 crore," an official said. "It has asked the state to address the lacunae and resubmit them, though most factories may not be able to comply."
In the last three years, the Mahayuti government proposed loans of Rs 5,200 crore to 32 sugar factories, most linked to ruling party leaders. Barring 10, including the seven recently rejected. Revenue minister Chandrashekhar Bawankule said, "The loans to sugar factories are given keeping the interest of farmers in mind."...
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