The Maharashtra sugar industry is not amused by the state finance minister’s proposal to write off interest and penalty in return for upfront payment of sales tax and sugarcane purchase tax dues by sick and closed mills.
According to sources in the sugar industry, there are 30 mills whose net worth is negative and which have not crushed cane in the previous three seasons.
The state government is estimating sales tax and sugarcane purchase tax dues owed to it and it is believed the arrears could be in the range of Rs 15 crore to Rs 20 crore.
“The proposed revival scheme is of little help, as it does not address the real issue of financial crisis of such mills. If these mills are unable to make payment to banks, how will they be in a position to make upfront payment of sales tax and sugarcane purchase tax dues?,” industry sources told Business Standard.
“The sick and closed mills have got loans from the state cooperative bank on a government guarantee. The arrears towards these loans would be more than Rs 500 crore.”
