SEZ status to private sugar units opposed

The cooperative sugar units in the southern Maharashtra, which are facing a tough challenge from the private sector, especially after the latter took over a few sick cooperatives, now find themselves in another bind.

The Union government's proposal to offer the special economic zones status to private sugar factories has only added to the problem and has prompted the cooperative sugar barons to either oppose the special treatment given to the private units or fight for a similar SEZ status for themselves.

Chandradeep Narake, chief of the Kumbhi Kasari Sahakari Sakhar Karakhana, said the sugar cooperatives should be treated on a par with the private units. The SEZ status should be given to both and not just to private units, he added.

According to sources, Renuka Sugar Works in Belgaum district, Karnataka, is being accorded SEZ status. Facilities including free electricity, water and exemption from purchase tax, sales tax, income tax and also from labour laws are being offered under the SEZ.

The cooperatives sugar units, which are already bogged down by a number of problems, feel that such facilities will only hamper their growth.

While the RSW has already acquired Ajara co-operative sugar factory in this district, its proposed strengthening may result in taking over other ailing sugar cooperatives in this region, they fear.