Co-op sugar factories won't be sold off to private firms: Govt

In a significant policy shift, the Maharashtra government has decided not to allow the auctioning of distressed co-operative sugar factories to private firms.
The decision was taken at a meeting chaired by the Chief Minister Prithviraj Chavan yesterday, Minister for Co-operation Harshavardhan Patil told reporters here.
"So far, 69 factories (facing financial problems) have been sold off to private companies," he said.
Eighty of the co-operative sugar factories were in a strong financial condition, while a total of 100-105 factories were operational in the co-operative sector, Patil said adding that besides this, eight new co-operative factories were coming up.
The government would not allow sale of factories to private sector, as the farmers (who are share holders in the co-operative) would not have a voice in the privately owned factory, the minister said.

"A long-term lease policy has been adopted whereby the sugar factories facing financial crisis can be handed over to companies doing good business. Since we have to protect the interests of the stakeholders, a co-operative factory will not be sold off to a private company," he said.

The sugar crushing season in the state will start from November 1 and continue for 120 days, he said.
The minister also said that every organisation (factories, banks, etc) in the co-operative sector will have to hold the annual general meeting by the end of this month.
There have been allegations that often the firms close to local politicians end up buying the assets of financially broken co-operative factory at a dirt-cheap price.