UP to impound Bajaj Hindusthan's Rs 1,000 crore to pay sugarcane farmers

Bajaj Hindusthan's power utility dues to be diverted to farmers

The Uttar Pradesh Cabinet has approved a proposal to impound Rs 1,000 crore from Bajaj Hindusthan’s power plant in the state to pay sugarcane farmers.

According to the amended UP Sugarcane (regulation of supply and purchase) Act 1953, government agencies can impound the assets of the group companies if any firm defaulted on the payment of sugarcane dues. The proceeds could be used to settle the outstanding amount.

Bajaj Hindusthan’s Lalitpur-based thermal power project supplies electricity to the state power utility under a power purchase agreement.

The Bajaj Group’s sugar mills in the state collectively owe more than Rs 2,361 crore in farm