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The Uttarakhand government has decided to seek a relief package of Rs 350 crore from the centre for its sugar mills under the interest-free loan scheme.
“We are seeking a bailout package for Rs 350 crore for our sugar mills,” confirmed a top government official. This amount is being sought under the interest free loan of Rs 6,600 crore declared last month by the cabinet committee on the economic affairs (CCEA).
A letter in this regard will soon be sent by Chief Minister Vijay Bahuguna to Prime Minister Manmohan Singh, the official added.
The sugar mills in the hill state are facing heavy losses owing to low market price of sugar and a high state advised price (SAP) of cane which has been fixed at Rs 285 for the year 2013-14. The sugar mills are also complaining that the cost of sugar production is also very high. The accumulated losses of the sugar mills in the hill stated are said to be around Rs 500 crore.
Meanwhile, keeping in view the high cost of the SAP, the state government has decided to provide only Rs 260 per quintal as the price of sugar cane in the first installment.
The rest of the Rs 25 would be paid at the end of the crushing season, the official said. Chief Minister Vijay Bahuguna has also dispelled fears expressed by Union Water Resources Minister that the SAP has been reduced to Rs 260 per quintal.
The official also clarified that the government has cleared all the dues of sugar mills and that only Rs 88 crore was left on the part of private mills belonging to the last financial year.
